Foreign Policy

Powers of CFPB may be cut before it launches

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In July, a new federal agency is going to launch. That Consumer Financial Protection Bureau has been in the planning stages for years. The CFPB, however, would be weakened by several new bills. All three bills have the intention of weakening the new agency before it even launches. The House Financial Services Committee has approved these bills, however they have not yet become law.


The way CFPB is working now

In order to "promote fairness and transparency for mortgages, credit cards and other consumer financial products and services," the Consumer Financial Protection Bureau was started. It was part of the Dodd-Frank Act. July, 2011 is when the bureau will start. There still is not Consumer Financial Protection Bureau director that has been added, regardless of the deadline. Without a director, the Consumer Financial Protection Bureau will continue to run. It will be under the direction of the Security of Treasury.

Which bills would affect the CFPB

There have been three bills introduced in the United States House of Representatives that would make the CFPB weak. Rather than a Consumer Financial Protection Bureau director, there would be a five-member commission with HR 1121. This is called the Responsible Consumer Financial Protection Regulations Act of 2011. Any rules made by the CFPB could possibly be overturned by the Department of Treasury's Financial Stability Oversight Council with HR 1315. It is also called the Consumer Financial Protection Safety and Soundness Act. The agency wouldn't be able to start without a director if the Bureau of Consumer Financial Protection Transfer Clarification Act were to pass, or HR 1667. The House must now debate all these bills. They have already gotten the Financial Services Committee approval.

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The job the CFPB has been given

There are several things the Consumer Financial Protection Bureau will be in charge of, even though they may change. The Consumer Financial Protection Bureau will be in charge of consumer protection. They will monitor financial goods with this in mind. The Consumer Financial Protection Bureau would be responsible for enforcing any federal financial laws in place already. The Bureau is also intended to become a clearinghouse for information and resources for customers.

Citations

Treasury.gov

treasury.gov/initiatives/Pages/FSOC-index.aspx

WalletPop

walletpop.com/2011/05/12/5-things-the-consumer-financial-protection-bureau-will-do-for-yo/

House.gov

house.gov/