(02/15/2011) A new federal government agency for consumers, the Consumer Financial
Protection Bureau (CFPB) is live and online and what it should do and be
is already a matter of criticism.
Loaded with mortgage and consumer credit rules
and empowered by powerful"Wall Street Reform" law, the new Federal Reserve-based
watchdog was created to ensure consumers get clear and accurate information
necessary to shop for mortgages, credit cards and other financial products.
It also protects consumers from hidden fees, predatory terms and deception.
The Center for Responsible Lending, in a brief to Congress says the health of the economy is
based on the new agency's initiatives because consumer spending comprises 70
percent of the U.S. economy.
"Restoring consumer confidence and demand for products is vital to creating
jobs. This is more likely to happen if consumers know that the financial
marketplace is fair and safe for everyone. In addition, small businesses --
which create 80 percent of our nation's new jobs -- rely heavily on non-bank
credit and need access to low-cost, fair credit to grow," according to the
brief by CRL's Susanna Montezemolo.
"Business leaders who care about the long-term success of their companies
and our country understand that a healthy economy is based on earnings,
savings, trustworthy credit and fair competition -- not on ripping off
American families and businesses," she writes.
Inadequate regulation that allowed toxic mortgages helped fuel the current crisis and
inadequate reform will assure a repeat," says Tim Duncan of the American
Business Leaders for Financial Reform.
CFL says the CFPB should create transparent access for consumers to
financial markets, products, and services that are fair, transparent, and
competitive.
This means:
• Ensuring consumers have timely and understandable information.
• Prohibiting unfair, deceptive, or abusive practices.
• Identifying and addressing outdated or burdensome regulation.
• Promoting efficient, competitive markets for consumer financial
products.
• CFPB scope of activity should include rulemaking, supervision and
enforcement of traditional regulatory responsibilities, now consolidated in
one agency versus scattered among several.
• Providing consumer financial education programs that give consumers a
better understanding of their choices. Investigation of consumer complaints
to improve consumers' experience in financial markets and gathering
information on business trends and practices.
• Financial markets gathering data to help inform decision-making by
businesses, consumers, and regulators with a special focus on key consumer
segments including seniors and military service members.
Follow the link to continue reading the related articles.
