Consumer Financial Protection Bureau May Not Protect Consumers Quite Yet

09 May 2011, by Benjamin Luftman in Consumer Law, Misc

Consumer Financial Protection Bureau (CFPB) was created under the Obama administration to protect consumers from problems relating to credit cards, mortgages and other financial products or services that may be difficult to decipher on their own. The mission of this new government agency is to help American families make smart financial decisions and ultimately help eliminate the economic hardships that many people are facing every day.

Elizabeth Warren, a Harvard law school professor, was selected by the President to run this agency until a suitable director is appointed. So far, she has made it her priority to help working-class citizens by creating new bills to send to Congress eliminating deceptive or abusive practices. The bureau is said to launch officially on July 21, 2011 but if a new director isn’t appointed by that time, it will limit the chance to succeed before it even begins.

Forty-four Senate Republicans wrote a letter to Obama stating that they will not confirm anyone for this position because it lacks accountability and gives too much power to a single person. Warren believes that re-structuring the agency will eliminate or delay the bureau and give more power to bankers and finance companies that swarm Wall Street.

The CFPB asks that Congress oppose H.R. 1121 and S.737 and give the bureau a chance to succeed before making changes to its structure.

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