Posted by Abundant Wealth Planning LLC

Consumer Financial Protection Bureau (CFPB)

Consumer Financial Protection Bureau (CFPB)

The Consumer Financial Protection Bureau (CFPB) is responsible for overseeing financial products and services provided to consumers. The CFPB is divided into several units: Investigation, Community Affairs, Consumer Complaints, Fair Credit Bureau, and Financial Opportunities Bureau. These units work hand in hand to protect and educate consumers about the many financial products and services available.


Understanding the Consumer Financial Protection Bureau (CFPB)

The CFPB was created by the Dodd-Frank Wall Street Consumer Protection and Reform Act of 2010. The CFPB is chaired by a chief appointed by the president for a five-year term. The CFPB is also assisted by a Consumer Advisory Council of at least six members recommended by the regional president of the Federal Reserve.

Specifically, the CFPB helps consumer financial markets operate more efficiently by providing rules, enforcing them, and empowering consumers to take charge of their personal financial lives. The CFPB strives to educate and inform consumers about abusive financial practices, monitor banks, financial institutions, and other financial institutions and also study data to better understand financial markets they participate in and their consumers.


Vision and objectives of the CFPB

The general objective of the CFPB is to facilitate the development of the consumer credit market. As a result, consumers have access to financial risks and transparent prices and are aware of deceptive and abusive financial practices. The CFPB divides this high-level objective into four specific strategic objectives.

The first objective is to prevent financial damage to consumers while promoting good financial practices. The second objective is to empower consumers for a better economic life. The third objective is to inform the public and policymakers with data-driven analytical information. The fourth and final objective is to continue to promote the overall impact of the CFPB by maximizing the productivity of resources.


How CFPB helps individual consumers

In addition to these high-level goals, CFPB also provides financial advice to people. Student financial guides are provided for students and parents who will need to pay for college. These guides allow you to compare the financial aid available on the market.

For graduates, CFPB provides information resources on retirement planning. The agency can help you with Social Security benefits and give you specific advice on a person's retirement status.

Finally, the CFPB can help owners. The CFPB website provides consumers with interest rate help, monthly payment spreadsheets, and a loan comparison tool. For consumers who need help with mortgages, CFPB offers advice on financial hardship.

Here are some of the ways CFPB benefits consumers:

  • Law enforcement advisory services

  • Monitor financial practices in the mortgage industry

  • Protect consumers from deceptive credit practices

  • Provide financial education to consumers

  • Supervision/regulation of mortgage institutions


File a complaint with the CFPB

Part of CFPB's mission to protect consumers includes a publicly accessible complaints system. Here are the steps consumers can take.

  • The process starts when a complaint is filed, made through the CFPB or another body. The CFPB process recommends a prior study of the complaint process to avoid misunderstandings about the system's functioning.

  • CFPB sends your complaint to the company you complained about and tries to get a response from them. Sometimes they enlist another government agency for help.

  • Within 15 days (60 on rare occasions), the business must report actions taken (or planned) to resolve complaints. This may include communication with you through the company if necessary.

  • Your complaint is published in the CFPB consumer complaints database, along with a description of what happened after the complaint was filed. Your personal information is deleted before publication.

  • CFPB will notify you of the company's response, allow you to review that response, and give you 60 days to provide your comments.

According to the CFPB, consumer complaints, which will reach the consumer complaints database, will help the agency "understand the financial market and protect consumers."


Supreme Court Judgment

The United States Supreme Court, in a 5-4 decision, ruled on June 29, 2020, that the structure of the CFPB violated the clause separating the powers of the constitution because the bill provided that the director of the bureau could be sacked by the president alone for "just cause," defined as "inefficiency, neglect of the debt or lack of mandate." The Court ruled that the president may dismiss the Director of CFPB for any reason. This decision allows the CFPB to remain intact, although more vulnerable to the executive branch of the government.


Summary

  • Established in 2010, the CFPB is a regulatory body responsible for overseeing consumer-related financial products and services.

  • Some of the objectives of the CFPB include preventing financial damage to consumers, educating and training consumers in financial matters, and providing data-based information.

  • Those interested in financing higher education, renovation, or homeownership can find all the resources made available by the CFPB.

  • Unlike the bill that created the agency, the Federal Supreme Court ruled on June 29, 2020, that the president can dismiss the director of the CFPB for any reason.


FOR MORE INFORMATION ON HOW ABUNDANT WEALTH PLANNING, LLC. CAN BEST HELP YOU WITH YOUR TAX FILING NEEDS, PLEASE CLICK THE BLUE TAB ON THIS PAGE.


THANKS FOR VISITING.

Abundant Wealth Planning LLC
Contact Member