CFPB
As Americans recover from our worst financial crisis since the Great Depression—brought on in part by unfair and predatory practices by financial firms—it is imperative to protect the American consumer today and in the future. The Consumer Financial Protection Bureau (CFPB), a key component of the Dodd-Frank Wall Street Reform & Consumer Protection Act which I proudly supported, does just that.
The CFPB consolidates consumer protection and regulation of financial practice and allows consumers the opportunity to provide feedback on and make inquiries about financial consumer products. When families are dealing with financial institutions to open a bank account, take out a loan to send a child to college, or apply for a mortgage, they will be able to trust that the process is fair and transparent.
The main objectives of the CFPB are to:
- Provide financial services information to consumers,
- Protect consumers from harmful financial practices,
- Eliminate unnecessary regulations
- Enforce federal consumer financial laws
- Facilitate innovation in financial services and products markets
CFPB initiatives include “Know Before You Owe” which will merge the Truth in Lending Act and Real Estate Settlements Procedures Act mortgage disclosure forms to more clearly communicate the costs and risks of consumers’ options. The Bureau will also be involved in the regulation of non-bank financial institutions, such as credit rating agencies.
In January, 2012, President Obama appointed former Ohio Attorney General Richard Cordray as Director of the CFPB which will allow the Bureau to regulate non-bank financial institutions—such as payday lenders, mortgage brokers, and private student lenders. For the first time, the playing field will be level between those financial institutions and traditional banks.
Legislation
H.R. 4173 Dodd-Frank Dodd-Frank Wall Street Reform and Consumer Protection Act (as enrolled)
Documents
01/30/12 - CFPB Semi-Annual Report to Congress
07/18/11 - CFPB White Paper “Building the CFPB”
07/28/11 - Inspector General’s Review of CFPB Implementation Planning Activities
More on CFPB
WASHINGTON – Congresswoman Carolyn B. Maloney (D-NY) today released the following statement in response to the Government Accountability Office (GAO) report on Consumer Financial Protection Bureau (CFPB) data collection.
“This report shows that the CFPB collects similar amounts of data as the other banking regulators, and that the data collected is anonymized and protected.
“The report puts to rest the idea that CFPB has been improperly using consumers’ personal financial data."
WASHINGTON – Congresswoman Carolyn B. Maloney (D-NY) today urged Consumer Financial Protection Bureau Director Richard Cordray to act immediately to curb abusive overdraft fees. Maloney, who authored the Credit Card Accountability Responsibility and Disclosure Act of 2009, says the CFPB has the authority to limit overdraft fees charged to bank accounts in the same way her bill limited similar fees on credit card transactions. The Congresswoman called for two specific actions by the CFPB: a limit on overdraft fees and expanded opt-in requirements.
WASHINGTON – Congresswoman Carolyn Maloney (NY-12) today released the following statement in opposition to H.R. 3193, the so-called Consumer Financial Freedom and Washington Accountability Act.
“H.R. 3193, which could aptly be named the Consumer Financial Deception Act, is a blatant assault on the Consumer Financial Protection Bureau and on American consumers. This legislation was reported out of committee without the support of a single Democrat, and it was rushed to the floor with little analysis of how it would affect consumers or our economy."
WASHINGTON, DC – Rep. Carolyn B. Maloney (D-NY), senior member of the House Financial Services Committee and principal author of the Credit CARD Act, hailed the first biennial report issued by the Consumer Financial Protection Bureau-- required under the CARD Act-- examining the consumer credit card market, including “the effect of the Act on the cost and availability of credit and the adequacy of protections for consumers relating to credit card plans.”
WASHINGTON, DC – Rep. Carolyn B. Maloney (D-NY) today hailed Senate confirmation of Richard Cordray as Director of the Consumer Financial Protection Bureau (CFPB) by a vote of 66-34.
“Richard Cordray has done an outstanding job leading the CFPB and executing its mandate of protecting consumers, and that was reflected in the strong bipartisan vote confirming him,” Maloney said. “Under his leadership, the CFPB has carefully handled over 150,000 complaints, helped 6 million consumers recover over $400 million in restitution from deceptive practices, and developed a ‘qualified mortgage rule’ that is fair and balanced. At my request, he helped clarify the rule under the Credit CARD Act affecting stay-at-home spouses. The CFPB has been responsive to all players on the financial landscape, even as they have leveled the playing field for consumers and community banks. With his confirmation, Director Cordray will now be in a position to continue his tremendous consumer protection efforts.”
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WASHINGTON, DC – Today, Rep. Carolyn Maloney (D-12-NY) welcomed President Obama’s re-nomination of Richard Cordray to lead the Consumer Financial Protection Bureau (CFPB) and issued the following statement:
“Richard Cordray has done a superb job as Director of the Consumer Financial Protection Bureau and I'm delighted that the President has formally re-nominated him. He has been a strong leader-- establishing the Bureau's infrastructure and executing the Bureau's mission of working for a level playing field between consumers and financial institutions. The body of work under his leadership, from reigning in irresponsible mortgage lending to implementing my Credit Card Act, has gained praise from consumers and the financial industry. Rich has proven to be fair and open with all stakeholders as the Bureau conducts its work. I hope the Senate moves quickly to confirm him.”
WASHINGTON, DC – Today, Rep. Carolyn Maloney (D-12-NY), senior member of the House Financial Services Committee and principal author of the Credit Cardholders’ Bill of Rights (passed as the Credit CARD Act), issued the following statement in response to the announcement today by the Consumer Financial Protection Bureau (CFPB) that they are seeking public comment on how the CARD Act has impacted consumers and the credit card market: