The Consumer Financial Protection Bureau (CFPB)
As Americans recover from our worst financial crisis since the Great Depression—brought on in part by unfair and predatory practices by financial firms—it is imperative to protect the American consumer today and in the future. The Consumer Financial Protection Bureau (CFPB), a key component of the Dodd-Frank Wall Street Reform & Consumer Protection Act which I proudly supported, does just that.
The CFPB consolidates consumer protection and regulation of financial practice and allows consumers the opportunity to provide feedback on and make inquiries about financial consumer products. When families are dealing with financial institutions to open a bank account, take out a loan to send a child to college, or apply for a mortgage, they will be able to trust that the process is fair and transparent.
The main objectives of the CFPB are to:
(1) provide financial services information to consumers,
(2) protect consumers from harmful financial practices,
(3) eliminate unnecessary regulations
(4) enforce federal consumer financial laws
(5) facilitate innovation in financial services and products markets
CFPB initiatives include “Know Before You Owe” which will merge the Truth in Lending Act and Real Estate Settlements Procedures Act mortgage disclosure forms to more clearly communicate the costs and risks of consumers’ options. The Bureau will also be involved in the regulation of non-bank financial institutions, such as credit rating agencies.
In January, 2012, President Obama appointed former Ohio Attorney General Richard Cordray as Director of the CFPB which will allow the Bureau to regulate non-bank financial institutions—such as payday lenders, mortgage brokers, and private student lenders. For the first time, the playing field will be level between those financial institutions and traditional banks.
H.R. 4173 Dodd-Frank Dodd-Frank Wall Street Reform and Consumer Protection Act (as enrolled) (PDF)
01/30/12 - CFPB Semi-Annual Report to Congress (PDF)
07/18/11 - CFPB White Paper “Building the CFPB”
02/22/11 - The CARD Act: One Year Later, a CFPB COnference (PDF)