The Consumer Financial Protection Bureau – America’s New Financial Watchdog

First Published Date: July 19, 2011 ADawnJournal.com

America’s new financial watchdog the Consumer Financial Protection Bureau starts its journey this week. It was setup in the aftermath of the global financial crisis to give US consumers financial rights and to protect consumers by carrying out financial laws.

The central role of the CFPB to inform consumers by promoting financial education, enforce Federal consumer financial laws, and study, analyze information to better understand consumers, financial markets and service providers.

Information is what makes all the difference when it comes to understand the terms and agreements implemented by the financial companies. These terms and agreements are written in such a way that even an MBA holder faces difficulty comprehending the true meaning lies behind these infinite mazes – forget about a general consumer with no financial literacy. The Consumer Financial Protection Bureau’s main objective will be to educate consumers, so they understand the risks and rewards when they shop for financial products. The CFPB will be doing various other things. Here are some of the most important ones:

– Enforce consumer protection laws

– Monitor financial markets to restrict illegal, abusive practices and to identify new
risks to consumers

– Maintain a consumer toll-free hotline to take complaints

– Review practices of financial service providers

– Promote financial literacy

The Consumer Financial Protection Bureau resulted from the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act). On July 21, 2010, President Barack Obama signed this act into law.

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