checking

Consumer protection superagency created

Investigate and punish abusive lenders
Next
2 of 9
Back

The Consumer Financial Protection Bureau was created in part as a reaction to the lending abuses that were rife during the run-up to the financial crisis.

"Everyone now understands that strong consumer protections are part and parcel of a strong economy. If you abuse consumers, who account for seven out of every 10 dollars spent in the economy, you're headed for a problem," says Kathleen Day, a spokeswoman for the Center for Responsible Learning.

Day says the problem with consumer protection has never been a lack of laws; it's been a lack of enforcement. The new agency aims to fix that by concentrating enforcement by all the government's financial watchdog agencies under one roof.

The act charges the agency with acting on consumer complaints, conducting investigations and putting dishonest companies on trial. To make sure groups frequently targeted by crooked lenders -- minorities, seniors and active military personnel -- are protected, special offices will be formed within the Consumer Financial Protection Bureau to investigate complaints on their behalf.

Lenders who are found to have abused consumers can be fined or sued for damages by the bureau, or referred to the Justice Department for prosecution.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Ask Dr. Don

Have a savings bond tax problem?

Dear Dr. Don, I have a number of savings bonds that will stop earning interest in the next three to four years, months apart from each other. I retired in 2013. Is there any way for me to legally avoid paying the income... Read more

advertisement
Partner Center
advertisement

Connect with us