Consumer finance protection bureau – CFPB
Consumer finance protection bureau has its acronyms as CFPB. It is an agency which is responsible for the protection of the consumers in the financial division. It is the a united states agency which its jurisdiction include the following; credit unions, debt collectors, securities firms, banks, mortgage servicing operations, foreclosure relief service, payday lenders and any united states operating financial institutions or companies.
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Consumer finance protection bureau was formed in July 21, 2011 after its creations was initiated by the consumer protection act and Dodd-Frank Wall Street reform in 2010 which was passed by the legislative in their response to 20017 to 2008 financial problems and following the great depression, the Consumer finance protection bureau was created to be an agency that is independent and had its status renewed later by the court of appeals US.
The role of Consumer finance protection bureau
The priority of the bureau are students loans, credit cards and the mortgages as was said by the former director of Consumer finance protection bureau, Cordray Richard. The initial designation of Consumer finance protection bureau was to get its employees consolidated and the responsibilities some of the regulatory bodies of the governments which includes the federal trade commission, federal deposit insurance corporation, the federal reserve, the department of housing and urban development, and the national credit union administration. Consumer finance protection bureau is funded by the government of the United States federal; reserve and has its independent unit located in it.
Another role of the Consumer finance protection bureau is the writing and enforcement of rules on the financial companies’ e.g. non-bank financial institutions and banks are examined by them and also monitors, reports, collects and track the complaint of the consumers on markets.
The Consumer finance protection bureau had its website opened in the early 2011 around February and this was to accept consumer suggestions either from twitter, YouTube or its own website interface.
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Transparency and fairness promotion for credit cards, mortgages and consumer financial services and products were the responsibility charged with Consumer finance protection bureau by the United States treasury department. The central mission of Consumer finance protection bureau is to make available markets for consumer financial services and products for the citizens either credit cards, mortgages or any financial products are being applied for by the citizens. Ten percent of the thousands of complaints from consumers on financial services which includes credit card issuers and banks were collected and collated by the Consumer finance protection bureau and they made its availability to be public on the database of the government in 2016.
Consumer finance protection bureau history
Consumer finance protection bureau was initiated in response to the financial crisis and the recession in the late 2000s and was passed in the 111th congress of the United States. Dodd-frank wall street reform and consumer protection act were the ones that proposed the bill and passed in 2010 which kicked off in 2011. Consumer finance protection bureau was actually proposed way back to 2007 by Professor Elizabeth Warren in Harvard University law school. The proposal was supported actively by the Americans for Financial Reform. Americans for Financial Reform was an umbrella organization which was newly created as at then and had over two hundred and fifty consumers, civil rights and labour with some activists’ organizations under its umbrella.
Professor Elizabeth was appointed as senator to be the special advisor on Consumer finance protection bureau to the secretary of the treasury in September 17, 2010 by President Obama.
Due to the type of legislation written in the creation of Consumer finance protection bureau, the new rules could not be written or put in place to be able to supervise and organise other financial companies until the first director was put in place.
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Senator Warren was soon removed as the first director by the president Obama administration officials because they were convinced that Senator Warren could not defeat the opposition of the republicans.
Richard Cordray, the former attorney General of the Ohio and Ohio state treasurer was nominated by president Obama to become the next first Director of the Consumer finance protection bureau but the nomination was cancelled by the forty-four senate republicans because they have vowed to encourage a structure of the organization should be decentralised.