Consumer Financial Protection Bureau

Topic Summary: The Mortgage foreclosure meltdown was partially the result of consumers not knowing what they were getting into when they signed mortgage documents. As part of Wall Street reform regulations, the Consumer Finance Protection Bureau has launched (video) and will become a multi-purpose consumer watchdog with enforcement capabilities.

The central mission of the Consumer Financial Protection Bureau (CFPB) is to make markets for consumer financial products and services work better for Americans-whether they are applying for a mortgage, choosing credit cards, or using any number of other consumer financial products.

There has been much recent political fighting as to approving President Obama's selection to head up the Bureau. The Senate, a few days ago, blocked the nomination of Richard Cordray

The CFPB, once fully staffed, will be able to crack down and penalize companies that break the rules. The Bureau's now is welcoming submissions from consumers who have questions and complaints when dealing with mortgages such as refinancing or pre-forclosure issues. Their intent is to answer every complaint and alert consumers when they see trends forming. The mortgage complaint page is HERE

Also just launched is a complaint area for Credit Card issues.

The Bureau will be sharing their findings an many social networks including You Tube, Facebook and Twitter.

The big focus (see chart on Bureau's structure) is going to be on education and getting rid of all the "fine print" used to deceive consumers when they are making decisions on mortgage, insurance, credit cards or other "contract related" matters. The Bureau will also be enforcing Federal consumer financial laws.

Here are the main activities of the Bureau
• Conduct rule-making, supervision, and enforcement for Federal consumer financial protection laws
• Restrict unfair, deceptive, or abusive acts or practices
• Create a center to take consumer complaints
• Promote financial education
• Research consumer behavior
• Monitor financial markets for new risks to consumers
• Enforce laws that outlaw discrimination and other unfair treatment in consumer finance

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