Launch of Consumer Financial Protection Bureau marred by bills to cut powers

In July, a new federal agency is going to launch. That Consumer Financial Protection Bureau has been in the planning stages for years. Regardless of strong consumer support, three new House bills are attempting to weaken the CFPB. None of these bills have become law yet. All three, however, have been approved for House debate.

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. There still is not Consumer Financial Protection Bureau director that has been added, regardless of the deadline. Without a director, the CFPB will continue to run. It will be under the direction of the Security of Treasury.

Which bills would affect the Consumer Financial Protection Bureau

In the United States House of Representatives, three separate bills to weaken the CFPB have been introduced. 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. HR 1315, called the Consumer Financial Protection Safety and Soundness Act, would give the Financial Stability Oversight Council of the Department of Treasury the right to overturn any rules made by the Consumer Financial Protection Bureau. The last bill is HR 1667, or the Bureau of Customer Financial Protection Transfer Clarification Act. It would make it extremely hard for the agency to start without a director. These three bills have been approved by the Financial Services Committee and will be debated in the House.

All the Consumer Financial Protection Bureau has to do

Though the duties and responsibilities of the CFPB may change, there are several things the Bureau will likely remain responsible for. Financial products will be monitored, with consideration of consumer protection, by the Consumer Financial Protection Bureau first. 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.

Articles cited

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/