Consumer Financial Protection Bureau protect me

You must first complete Overview of history of CFPB before viewing this Lesson
Please purchase the course before starting the lesson.

The Consumer Financial Protection Bureau (CFPB) is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives.

Educate

CFPB provides financial education to consumers and ensures people are able to get the information they need to make sound financial decisions.

A fair, efficient, and transparent market depends upon consumers’ ability to compare the costs, benefits, and risks of different products effectively—and to use that information to choose the product that is best for them. Fine print and overly long agreements can make it difficult for consumers to understand and compare products.

Quick Quiz

Fill in the Blank:
CFPB provides education to consumers and ensures people are able to get the information they need to make sound financial .

Enforce

Like a cop on the beat, CFPB is responsible for rule-making, supervision, and enforcement of Federal consumer financial protection laws and restricting unfair, deceptive, or abusive acts or practices against consumers.

No provider, regardless of size or type, should be able to build a business model around a set of practices that target consumers unfairly. With consistent rules that apply across the marketplace, consumers receive strong protections regardless of whether they deal with a bank or a nonbank financial company.

Enforcement

Study

The Bureau also takes consumer complaints, researches consumer behavior, and monitors financial markets for new risks to consumers.

Monitoring financial institutions and analyzing how people respond and interact with them gives CFPB more information about hazards consumers encounter when dealing with various companies and entities and also provides a comprehensive look about the health of the entire system.

Prior to the passage of the Wall Street Reform Act (LINK), no single agency had effective tools to establish standards for and oversee the whole market, and consumer financial protection was no one’s top priority. The result was a system where no one was sufficiently accountable for getting the job done. We saw the outcome of this structure—both in the 2008 financial crisis and in its aftermath.

Quick Quiz

Fill in the Blank:
The Bureau also takes complaints, researches consumer behavior, and monitors financial for new risks to consumers.

CORE FUNCTIONS

We work to give consumers the information they need to understand the terms of their agreements with financial companies. We are working to make regulations and guidance as clear and streamlined as possible so providers of consumer financial products and services can follow the rules on their own.

Congress established the CFPB to protect consumers by carrying out federal consumer financial laws. Among other things, we:

Write rules, supervise companies, and enforce 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.

OUR MISSION

The CFPB is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives.

Quick Quiz

Fill in the Blank:
Congress the CFPB to protect consumers by carrying out federal consumer financial .

OUR VISION

If we achieve our mission, then we will have encouraged the development of a consumer finance marketplace where customers can see prices and risks up front and where they can easily make product comparisons; in which no one can build a business model around unfair, deceptive, or abusive practices; that works for American consumers, responsible providers, and the economy as a whole.

Rule Making

ACHIEVE OUR MISSION AND VISION THROUGH

Data-driven analysis

The CFPB is a data-driven agency. We take in data, manage it, store it, share it appropriately, and protect it from unauthorized access. Our aim is to use data purposefully, to analyze and distill data to enable informed decision-making in all internal and external functions.

Innovative use of technology

Technology is core to the CFPB accomplishing its mission. This means developing and leveraging technology to enhance the CFPB’s reach, impact, and effectiveness. We strive to be recognized as an innovative, 21st century agency whose approach to technology serves as a model within government.

Valuing the best people and great teamwork

At the CFPB, we believe our people are our greatest asset. Therefore, we invest in world-class training and support in order to create an environment that encourages employees at all levels to tackle complex challenges. We also believe effective teamwork extends outside the walls of the CFPB. We seek input from and collaborate with consumers, industry, government entities, and other external stakeholders.

Quick Quiz

Fill in the Blank:
Technology is to the CFPB accomplishing its mission.

Bottom Line: Consumer Financial Protection Bureau Is it working?  You decide.

Back to: TRID Ahead
© Copyright - Dodd's School of Real Estate