Control of CFPB may be cut before it launches

The Consumer Financial Protection Bureau is set to launch in the next few months. Despite strong consumer support, three new House bills are attempting to weaken the CFPB. The House Financial Services Committee has approved these bills, but they have not yet become law.

Consumer Financial Protection Bureau status

The Dodd-Frank Act started the CFPB to “promote fairness and transparency for mortgages, charge cards and other consumer financial products and services.” July, 2011 is when the bureau will start. Even with the deadline, there still isn’t a director. The Consumer Financial Protection Bureau may have to wait a while for one. Until a director is nominated and confirmed, the Secretary of the Treasury is responsible for running the CFPB.

Possibilities of changing the Consumer Financial Protection Bureau

There have been three bills introduced in the United States House of Representatives that would make the Consumer Financial Protection Bureau weak. HR 1121, called the Responsible Consumer Financial Protection Regulations Act of 2011, would replace the director of the Consumer Financial Protection Bureau with a five-member commission. Any rules made by the Consumer Financial Protection Bureau could be overturned by the Department of Treasury’s Financial Stability Oversight Council with HR 1315. It is also called the Customer Financial Protection Safety and Soundness Act. The last bill is HR 1667, or the Bureau of Customer Financial Protection Transfer Clarification Act. It would make it impossible for the agency to start without a director. The House must now debate all these bills. They have already gotten the Financial Services Committee approval.

What the CFPB will do

There can be changes to what the Consumer Financial Protection Bureau has to do. Still, the Bureau has many responsibilities. The CFPB will be in charge of customer protection. They will monitor financial products with this in mind. Second, existing federal financial laws would be enforced with the assistance of the Consumer Financial Protection Bureau. Customers will be able to get information from the Bureau too.

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/