Liz Warren Defends Consumer Protection… Again
By Consumers Union on Thursday, July 14th, 2011
The House Banking Committee called Liz Warren back to testify on the CFPB.
Prof. Warren got down to business and explaining what the CFPB is actually all about.
“These are very large and powerful financial institutions who hire armies of lawyers to design financial products that can’t be read by average American families,” she said. “We need some pushback.”
It seems that at this point opponents should move on and let the CFPB start doing its job. Which is to provide a fair and sound financial product marketplace for consumers. They officially open their doors on July 21st. Some of the protections you can expect from the new watchdog are:
Make sure financial companies are following the law: The CFPB will oversee the financial marketplace and enforce laws that outlaw discrimination and unfair treatment of consumers. It will have the power to impose fines on companies that violate the law.
Collect and respond to consumer complaints: Consumers will be able to report complaints about financial practices through the CFPB’s web site (www.consumerfinance.gov) and a toll free number. Initially, the CFPB will collect consumer complaints on credit card abuses but it will eventually expand its complaint collection efforts to cover a full range of financial products.
Enact new protections to ensure consumers are treated fairly: A key part of the CFPB’s job will be to keep an eye out for emerging harmful financial products and practices and to enact new protections for consumers as needed.
Promote financial transparency: The CFPB will work to make sure that financial companies provide consumers with the information they need to make smart financial decisions. It is currently developing mortgage disclosure forms that aim to make it easier for consumers to understand the real cost of borrowing.