Iowa Banking Law Blog
Our rambunctious one-year old: Taking a closer look at the Consumer Financial Protection Bureau as it approaches its first birthday
May. 31, 2012 – The Dickinson Law Newsroom, Iowa Banking Law Blog
Contained within the Federal Reserve as an independent agency, the Consumer Financial Protection Bureau (CFPB) has proven to be one of the most controversial outgrowths of the Dodd-Frank Act. The CFPB officially came into existence on July 21, 2011.
As its central mission, the CFPB asserts: “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.” In fact, the agency is posturing itself as being so consumer friendly that it has its own Facebook page and Twitter feed.
The CFPB states on its website that its mission means “above all…ensuring that consumers get the information they need
Current tasks include rulemaking concerning reloadable prepaid cards and, just this week, the release of proposed rules aimed at supervising risky activities of nonbanks that provide consumer finance products.
The long list of regulations inherited by the CFPB from other federal agencies for which it now has enforcement responsibility may come as a surprise. Bear in mind, the list below consists of existing regulations; many more will be forthcoming from this powerful new independent agency into which most consumer finance protection responsibility has now been placed. Here are the current regulations for which the CFPB has primary responsibility:
In the case of each of the foregoing regulations, the CFPB has encouraged the public to provide comments for ways to streamline or improve these regulations.
We will continue to monitor new rulemaking (including rule changes) as this large, new agency begins its work in earnest over the next few months.
Industry Categories: Banks & Financial Institutions