Question

Discuss the functions of the Consumer Financial Protection Bureau and the provisions of the Consumer Financial Protection Act of 2010.

Answer 1

The Consumer Financial Protection Bureau is established in the United states in response to the financial crisis occurred in the 2008 and which resulted economic recession. The Consumer Financial Protection Bureau was created by the Dodd Frank Wall street reform and consumer protection Act began in 2011. In July 2010 the congress passed and the president Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act. This act was created the Consumer Financial Protection Bureau. This is an independent agency within the board of the governors of the Federal reserve. The Consumer Financial Protection Bureau consolidates the most of the federal consumer financial protection authority at the single place. This consumer bureau was focused on the goal that, giving the space for the American customers in the market place for customer financial product and services. CFPB regulates the provision of the customer financial product and service that are under the federal consumer financial laws, so that the customer will have the ability to access the market for the financial products and so the markets are transparent, fair and competitive.

CFPB is a watchdog agency that helps to protect the customer from unscrupulous lenders and other financial institutions. It also assumes existing duties once carried out by the government agencies and federal trade commissions. It promotes the transparency and fairness for mortgages, credit cards and other financial services and products of the customer. The CFPB sets the clear and consistent rule so that it will allow bank and other financial institutions to compete on level playing field , that makes the customers to see clearly the cost and feature of the service or the product.. It Assist the people to borrow the money or making use of the other financial service , which includes- Reviewing the business practice to make sure that financial institutes are following the law, Implementing and enforcing federal consumer financial law, monitoring the market environment and taking the proper actions to ensure markets works as transparently as required for the customer, Implementing the toll-free customer hotline and the websites for registering the complaints and ask the queries about customer financial services and the products. The functions of the CFPB as follows:

• Enforcing the federal anti discrimination laws based on customer finance
• Taking the customer complaints
• Alerting the consumer about the possible risks in the market environment
• Making the rules , supervise and enforce the Federal consumer financial protection law
• Enhancing the financial education
• place the restrictions on deceptive, abusive or unfair practice