The Consumer Financial Protection Bureau – 3 Important Steps Consumers Should Take to Protect Theirself
The Consumer Financial Protection Bureau (CFPB) is the United States government agency responsible for consumer protection in the financial sector. It has several duties, including helping people avoid scams. However, the bureau is often overlooked, and many consumers still fall victim to unscrupulous financial firms. Here are three important steps consumers should take to protect themselves. First, understand what it does. How can you find out more? Read on to learn more. The Bureau also provides resources for consumers.
The CFPB is responsible for overseeing the enforcement of federal consumer financial laws. It reviews business practices to ensure compliance with these laws, and monitors the marketplace to ensure that the financial system works transparently. It also establishes a toll-free consumer hotline and a website for consumers to ask questions and get answers to problems. As a result, the CFPB is the agency to turn to when you’re facing a financial scam.
The CFPB was established in 2011 through the Dodd-Frank Act, which is the result of a 2007 proposal from Sen. Elizabeth Warren. The intention was to regulate mortgages, student loans, and other financial products. This would help consumers get a better deal on their loans. But it wasn’t just the law that made the CFPB possible. There are now more than a dozen states with strong consumer protection laws and the CFPB will use this authority to enforce them.
The Bureau has the authority to investigate and enforce federal consumer financial laws, issue orders, and commence civil actions in federal court. The agency has authority to regulate the activities of nondepository covered persons and to supervise insurance-related companies. The Bureau also has authority to monitor the activities of insured depository institutions. The Bureau also oversees the activities of the Bureau’s Consumer Advisory Board. This Board is charged with overseeing the bureau and is composed of consumers.
Several recent actions have taken the CFPB to task. One major case is the $185 million fine that Wells Fargo paid for opening more than 1 million fake accounts without customer authorization. Another case involves a bank that overstated minimum amounts on its billing statements. CFPB has also made strides in the field of consumer protection by creating a database of complaints regarding financial services. These actions have resulted in fines of more than $727 million to consumers.
Several federal agencies have the power to issue awards, which is a rollup of individual transactions. This roll-up includes payments, contracts, and obligated money. The Consumer Financial Protection Bureau has issued awards through various forms of contracts and financial assistance. Its web site also includes consumer feedback on the new legislation. The Bureau also works to educate consumers about emerging scams and how to avoid them. It is the duty of government agencies to protect their citizens from being victims of fraud and deception.
Deepak Chopra was unanimously confirmed by the U.S. Senate as the Director of the Consumer Financial Protection Bureau (CFPB) from 2010 to 2015. Chopra had previously served as an FTC commissioner and worked in the health care, consumer technology, and financial services sectors. Chopra earned his bachelor’s degree from Harvard University and an MBA from the Wharton School of the University of Pennsylvania. The CFPB has a long way to go, but there are some promising strategies in the pipeline.