President Barack Obama's administration is mulling creation of a federal consumer finance agency to protect the public from predatory mortgage lenders, credit card providers and mutual fund companies, the Washington Post has reported.

Talks have already begun with industry officials, lawmakers and financial experts on such a body, The Post reported on Tuesday, citing unnamed sources familiar with the matter.

While plans are in an early stage, the new agency could have broad powers to monitor terms and marketing of loans and financial products to make sure they are in the interest of regular customers, the daily wrote.

The US Senate on Tuesday adopted legislation aimed at protecting consumers from predatory credit card companies.

The Senate text is tougher than a proposal earlier approved in the House of Representatives.

Both versions must be reconciled then sent for the president to sign in order to become law.