The Consumer Financial Protection Bureau (CFPB) is one of the independent financial regulator institutions in the United States- created by Dodd Frank Act. CFPB operates within banks, mortgage offering firms and even securities firm within the US. This financial protection body was established to restore peace and trust within the financial institution and their customers.
CFPB has a number of goals and missions which are as follows:
The bureau has the obligation to make financial markets work best for consumers. This Act makes sure that consumers are not exploited of their rights. It is also worth noting that, the bureau puts some checks and balances in all the financial undertakings within the financial institutions – for the safety of the customers. The unfair and deceptive practices of the financial institutions are greatly prohibited under this Act. Firms that do not follow the set rules are made to face the law. This financial bureau provides adequate information to consumers on the right decisions in the financial matters.
Under a normal routine, the prices of goods and services in the market should be well known. The risks and all the terms and conditions for the business should be clear to the consumers. With the Consumer Financial Protection Bureau, all this is made a reality. The Bureau empowers the consumers of the purchasing rights hence to enable them to get equipped with tips and good financial decision. On the other hand, they also educate the financial institutions of their mandate and their responsibilities within the financial market. The underscore concern for CFPB is to provide a central and single point of accountability within the financial institution in the United States. This has brought a change in shift since the responsibility of financial control was divided among agencies earlier making it be inefficient.
Companies are closely supervised, and all the unfair practices are rooted out. Any form of discrimination and consumer protection is taken care off. The bureau also makes research on consumer markets and trends.
The key accomplishments of the CFPB since its founding include:
Expansion in the capacity on consumer complaints – It is evident that consumers’ complaints are addressed and amicable solutions reached with the aim of creating fair trading behavior in the financial markets. Moreover, there has been a timely response to consumer complaints through the use of company portals and the general adoption of ICTs. The consumer markets work better as a result of enforcement of the set laws.
Also, of late, consumers understand and appreciate the benefits, costs and general risks paired with the consumer financial dealings. As a result, the consumers are hardly subjected to deceptive, unfairness and general exploitation from the financial institutions. This forms part of its great achievements.
The Bureau has also established an effective approach in assessing each rule on a regular basis. This has brought a new light to the financial markets since this assessment provides the achievements, recommendations and the general effectiveness of the laws. This is meant to provide validity and establish the purpose in meeting the set out objectives. So far, the prior assessments have proved to be significant and objectives clearly attained.
Another accomplishment is the analyzing of consumer data. Qualitative and quantitative information and consumer data have been analyzed. This is meant to better the financial consumer products and services in the financial market. This approach has brought the way forward by firms to abide by the laws governing consumer protection.
All firms are brought on board and embrace the new demands for CFPB. A scrutiny of the lending behaviors to the financial institution is mandatory besides a review of the loan and deposits by the giant CFPB.
