This month marks the fifth anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which created the Consumer Financial Protection Bureau, or CFPB. The CFPB is the only financial regulator solely dedicated to protecting consumers, and as of July 2015, it has helped return more than $10.1 billion to more than 17 million consumers tricked by deceptive financial practices. For years, critics have argued that the agency is too powerful. But the CFPB’s track record of leveling the playing field between consumers and the financial services industry has proven that the agency is worthy of longevity. Here’s why. The CFPB shields Americans from predatory lenders This year, the CFPB is considering new regulations on payday lending, one of the most prevalent and insidious forms of predatory lending. Payday loans create debt traps for low-income borrowers through high interest rates and unaffordable loan terms, and their effects ripple through families and entire communities. Because of the CFPB, payday loans are finally receiving the federal attention they deserve. Part of the CFPB’s success against companies peddling predatory financial products results from the agency’s engagement with the American people. Its publicly searchable complaint system and database allows the CFPB—as well as advocacy groups, industry players, and other consumers—to identify problems quickly and easily. This system helps keep the CFPB focused on pursuing relevant solutions to problems that matter to families and has handled more than 650,000 consumer complaints. The CFPB uses these online resources to remain aware of emerging unfair, deceptive, and abusive practices, allowing the bureau to evolve as fast as the market does. The CFPB owes its success to its independence The structure and independence of the CFPB is essential to its success. Unlike many commissions that face significant gridlock when they seek to take action, the CFPB is governed by a single director rather than a multiperson board. Additionally, independent funding allows the CFPB to focus on protecting consumers rather than kowtowing to financial services lobbyists. Not surprisingly, American consumers demonstrate overwhelming support for tougher financial rules and enforcement. A 2013 national poll found that after being provided a short description of the organization, more than 8 in 10 respondents “favor” the CFPB, and almost half strongly favor it. Overall, support for regulation of Wall Street has only increased in the years since the financial crisis. Seventy-three percent of respondents to the same poll in 2012 supported tougher rules and enforcements. In 2013, support grew to 83 percent. https://www.americanprogress.org/is...consumer-financial-protection-bureau-turns-5/
For those who don't know...After the 2008 recession caused by Republican banking deregulation, Obama put preventative measures into place to avoid such near-Depressions. Ever since, Republicans have tried to overturn Obama's changes. The Consumer Financial Protection Bureau is one of Obama's improvements. Even Marzul thinks that Republican banking deregulation was bad, and Obama is right.
