First Order of Business for the CFPB
First Order of Business for the CFPB
Despite not having elected a director, the Consumer Financial Protection Bureau officially opened July 21, 2011. Although unable to enforce any sort of financial regulation without a director, the CFPB is in the beginning stages of the first three measures to be carried out once a director is confirmed.
The CFPB has their eyes set on regulation over financial service providers and financial market reform as well as broadening consumer knowledge and education. The bureau proposed their top three areas of focus to be addressed upon confirmation of a director.
Mortgage Disclosure
If you plan to, or have recently dealt with a mortgage disclosure form, you will appreciate the CFPB’s Know Before You Owe proposition.
Mortgage disclosure forms are two-part federally required disclosure forms that help consumers pick which mortgage product is best. After asking for consumer feedback, the CFPB received 18,000 comments regarding redesigns for the forms.
The existing two forms are a combined five pages full of technical terms, lists of fees, and complicated terminology while it lacks detail, risk disclosure and simplicity.
The CFPB plans to redesign and combine the two forms into one form to make it simpler to understand by getting rid of the unclear and overlapping information.
Consumer Credit Card Complaints
Last year, the Federal trade Commission received over 33,000 complaints related to credit cards. This year, the CFPB is going to help the FTC address consumer complaints.
The bureau stands as a place where consumers can go for help with unfair practices on the part of financial services.
As one of its first measures, the CFPB set up a form on their website where consumers can file complaints with credit card companies and track the progress of their report.
Although they plan to address complaints related to credit cards at first, the CFPB plans to set up services to help address complaints from each area of focus.
Protecting Service Members
Current regulation exists to protect the personal finances of military men and women, but some financial services do not always follow those regulations.
The CFPB plans to collaborate with the Judge Advocate Generals to help enforce existing regulations that protect military personnel from financial service companies.
This joint effort establishes a common Statement of Principles allowing the Judge Advocate Generals’ Corps to provide information relating to consumer complaints from service members and military families to the CFPB.
Any financial service found to violate the existing protections will face enforcement actions.
