Last week proved to be a historic week in the consumer protection realm, as it marked the official starting of operations of CFPB (Consumer Financial Protection Bureau) on Thursday, July 21st. Brainchild of Elizabeth Warren, this powerful watchdog agency of government has now begun its business, after almost a year when Dodd-Frank Wall Street Reform and Consumer Protection Act was signed by President Obama and became law.
Although most of us have a general understanding about the focus of EPA, FDA, CIA and other such agencies, it is common speculation as to how CFPB is any different from any of these government agencies? The fact that CFPB is a single unified federal consumer agency and has been endowed with some exceptional powers is what distinguishes it from other consumer protection agencies that came before it.
Listed below are a few reasons that make CFPB one of the most promising allies for protecting consumers against the financial abuses, scams, and misleading financial products:
- Marking the breakthrough in the ways of working of financial agencies, CFPB is bestowed the power to create laws for consumer protection, supervise them, as well as enforce them. This also implies that if there were any consumer protection rules that were approved to be implemented several years back but have not been enforced as yet, CFPB has all rights to take charge and implement it now.
- CFPB will now serve as the central bureau to receive all consumer complaints.
- Restricting unfair and abusive financial practices, deceptive products and scams, is now the responsibility of CFPB.
- If you often get confused about whom to complain, where and how to file a complaint for various credit cards, payday lenders, debt collection, mortgage, and free credit score issues, you can now trust CFPB to get accurate financial education and guidance.
- Last but not least, CFPB will now also have an eagle’s eye view of consumer behaviour as well as financial markets for protecting consumers against newer risks.
With most financial acts and companies, along with myriad of rules and organizations falling under the authority of CFPB, there are high hopes that CFPB is all set to change the face of consumer protection in America, forever.
Alicia Lyttle is a financial consultant and a member of many financial communities. She loves to disseminate her knowledge through her articles and is a regular contributor for the famed credit report site, http://www.freecreditreportsinstantly.org/.