Powers of CFPB may be cut before it launches

The Consumer Financial Protection Bureau is going to launch in July. There are three bills in Congress that would have an effect on the CFPB. None of these bills have become law yet. All three, however, have been approved for House debate.

CFPB status

The Dodd-Frank Act started the Consumer Financial Protection Bureau to “promote fairness and transparency for mortgages, credit cards and other consumer financial products and services.” The bureau is set to open for the first time in July of 2011. There still is not Consumer Financial Protection Bureau director that has been added, despite the deadline. Without a director, the Consumer Financial Protection Bureau will continue to run. It will be under the direction of the Security of Treasury.

Bills to weaken Consumer Financial Protection Bureau introduced

It might not be long before the Consumer Financial Protection Bureau is weakened. Three bills in the U.S. House of Representatives have been introduced that might do this. Instead of a Consumer Financial Protection Bureau director, there would be a five-member commission with HR 1121. This is called the Responsible Consumer Financial Protection Regulations Act of 2011. HR 1315, called the Customer 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 CFPB. The agency wouldn’t be able to start without a director if the Bureau of Customer Financial Protection Transfer Clarification Act were to pass, or HR 1667. These three bills have been approved by the Financial Services Committee and will be debated in the House.

What the Consumer Financial Protection Bureau will do

Though the duties and responsibilities of the Consumer Financial Protection Bureau may change, there are several things the Bureau will likely remain responsible for. The Consumer Financial Protection Bureau will be in charge of customer protection. They’ll monitor financial products with this in mind. There are already a lot of federal financial laws. The Consumer Financial Protection Bureau would be in charge of enforcing this. Finally, the Bureau will have a ton of information available. Consumers will be able to access the information.

Information from

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/