What is the Consumer Financial Protection Bureau?

The Consumer Financial Protection Bureau just secured its first settlement which it wrestled away from Capital One Bank in the amount of $150 million for its aggressive and misleading marketing of credit card add-ons. Capital One will have to reimburse more than 2 million customers for fees for services such as credit monitoring and payment protection plans.

But the real story here is what the heck is the Consumer Financial Protection Bureau? If you’ve never heard of it, don’t worry! The new agency is only one year old, but it’s already been busy working to protect you.  Their main tasks are to educate consumers, enforce rules and restrictions, and gather information on consumer behavior as it relates to the financial markets.  According to their site, their core functions include:

  • Conduct rule-making, supervision, and enforcement for Federal consumer financial protection laws
  • Restrict unfair, deceptive, or abusive acts or practices
  • 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

The Consumer Financial Protection Bureau’s next big task seems to helping students in risk of defaulting on their student loans.  This is pretty awesome since student loans can never be written off, even in a bankruptcy.  Check out their Student Loan Debt Collection Assistant Online Tool  and then watch the video below on the agency.

 

Image via The Dignified Devil.

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9 thoughts on “What is the Consumer Financial Protection Bureau?

  • Good job, Consumer Financial Protection Bureau! This is great news for affected Capital One customers.

  • Good job, Consumer Financial Protection Bureau! This is great news for affected Capital One customers.

  • I’m all about educating the consumer. I think, in that respect, the CFPB is a fantastic thing. My only concern is trying to fix things that aren’t broken. For example: When the Durbin Amendment limited the % of interchange fees. Seems like a great idea but with adverse effects. Now banks are looking to make this money up elsewhere.

  • I’m all about educating the consumer. I think, in that respect, the CFPB is a fantastic thing. My only concern is trying to fix things that aren’t broken. For example: When the Durbin Amendment limited the % of interchange fees. Seems like a great idea but with adverse effects. Now banks are looking to make this money up elsewhere.

  • Hey Sandy,

    Great Article. A lot of people don’t know about this. I am going to link it up on Dinks Finance. It was great meeting you at FinCon, I hope you had a safe trip home.

    • Thanks Kristina! Sorry that we didn’t get to really chat at FINCON, but next time, Gadget. Next time. I wonder if anyone gets that reference. Come on, who was a kid in the 80’s?

  • Hey Sandy,

    Great Article. A lot of people don’t know about this. I am going to link it up on Dinks Finance. It was great meeting you at FinCon, I hope you had a safe trip home.

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