Seems as though CFPB has been in the news a lot these days. The consumer advocacy agency, you might recall, was a product of President Obama’s commitment to Americans to overhaul the entire financial sector. It was controversial and just before Thanksgiving, it was in the crosshairs once again, though this time, for reasons no one could have anticipated.
David Patreaus, you might recall, resigned from the highest office of the CIA in November when it was discovered he’d had a long term extra marital affair with the biographer who was memorializing his life story. David Patreaus’ wife, Holly, is in upper management of the Consumer Financial Protection Bureau. The scandal turned the attention briefly away from the agency’s many good works. Now, though, and in perfect alignment with the grace Holly Patreaus is so well known for, it’s back to business as usual. We thought we’d take a look back over the past year to see what this consumer watchdog group hasn’t done.
What’s Not Done
CFPB makes no apologies for its aggressive approach when dealing with banks, mortgage lenders and credit card companies. Its first responsibility, it promises, is to the American consumer.
CFPB does not pass the buck. Most in the industry would agree, too. Unless, of course, you’re one of the big bank CEOs that was vehemently opposed to the group.
The agency doesn’t hold back. With three massive credit card company fines this year alone, it’s clear it’s not taking orders from the financial sector on any level.
It hasn’t forgotten what’s at stake or who it serves. In the first year, the lion’s share of the resources went to fact finding efforts. It’s asked the public for its opinions on everything from credit card debt to payday loans to student loans – and its modeled its solutions from those opinions.
The agency has not squandered its funding. With in-depth, streamlined and focused initiatives, its Know Before You Owe campaign has made great strides in providing financial literacy for consumers around the nation.
CFPB also hasn’t forgotten its long term objectives. With many of its programs, there is a healthy significance placed on the benefits here and now, but also the long term repercussions of its efforts. Whether it’s educating the public, reining in financial entities that have shirked their responsibilities to maintaining databases that empower consumers, it’s all about a thorough coverage. It’s about making sure people have all the information they need to make better financial decisions.
If many thought its objectives were unrealistic, now that the agency is into its second year, it’s clear it’s not forgotten any of its promises, including redesigning various mortgage forms, credit cards terms and conditions and other financial documents that consumers have historically struggled to understand. The bureau made that happen in its first year.
Complaint Line
You may recall a promise that a consumer complaint line would be put into place. Despite the overwhelming workload it faced in its first months, the agency was able to put into place that complaint line. It’s organized and focused. Within that first year, it received, documented and tracked close to 50,000 consumer complaints. Many were referred to other agencies, many were investigated out of CFPB and all were followed up on. Many are pending, but many more have been resolved.
Despite the insistence of Republican political leaders, CFPB hasn’t wreaked any damage to the economy. You may recall efforts by the financial industry and Republicans to block the agency in its entirety. When that didn’t work, it then tried to prevent Richard Cordray from being offered the agency’s highest chair. Of course, that didn’t work either. Despite fears that the agency had too much power, and despite claims that it would limit consumers in their financial products, the bureau has done anything but. In fact, in a letter to President Obama, Republican lawmakers said these laws would do little more than “restrict credit to consumers and increase the cost of goods or services purchased using credit.”
Concede the Good
Now that we know what the agency hasn’t done, maybe it’s time for the naysayers to concede the good works over the first 18 months or so. Even those who are vehemently opposed to President Obama’s healthcare bill can’t argue his decision to push through these new regulations, even as he was getting resistance from all – including his own party, and the positive changes those regulations have brought to consumers around the country. In fact, some have suggested had Mitt Romney not been so vehement in overturning all of these new financial regulations, he might would have gained more votes. Of course, no one will know for sure, and that’s OK – we’re just glad to know CFPB is still intact.
What are your thoughts on CFPB? What kind of grade would you give it in its first year? Join the conversation and let us know your opinions.
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