6:51 pm - Sunday July 23, 2017

DFA and Bureau of Consumer Financial Protection

Bureau of Consumer Financial Protection is the Federal Agency that is entrusted with primary responsibility for ensuring consumer protection.

It was founded as per the Dodd Frank Act mandate and began operations on 21st July 2011. This Bureau is required to promote fairness and transparency for mortgages, credit cards and other consumer financial products, services and packages. The website of the Bureau proclaims its mission as under: “The central mission of the Consumer Financial Protection Bureau is to make markets for consumer financial products and services work for Americans – whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products.” The Bureau will have jurisdiction over banks, credit unions, securities firms, payday lenders, mortgage servicing operations, foreclosure relief services, debt collectors and other financial companies. The Bureau will be an independent unit located inside and funded by the US Federal Reserve with interim affiliation with the US Treasury Department. It will write and enforce bank rules, conduct bank examinations, monitor and report on markets as well collect and track consumer complaints.

The consumer bureau is expected to provide consumers the information they need to understand the terms of their agreements with financial companies. It will 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.

CFPB has been established to protect consumers by carrying out Federal consumer financial laws. Among other things, it will, 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 and enforce laws that outlaw discrimination and other unfair treatment in consumer finance

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