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.