The Consumer Financial Protection Bureau, or CFPB, was established after the economic crash of 2008 to put rules in place for future consumer protection after the economic crash of 2008 – but it’s future is uncertain under President Trump. The CFPB’s goal is to:
“We aim to make consumer financial markets work for consumers, responsible providers, and the economy as a whole. We protect consumers from unfair, deceptive, or abusive practices and take action against companies that break the law. We arm people with the information, steps, and tools that they need to make smart financial decisions.”
Massachusetts Senator Elizabeth Warren (who was a law school professor at the time) proposed the idea that created the CFPB. President Obama chose Director Richard Cordray to lead the Bureau, which has changed the mortgage lending industry by insisting on simplifying disclosures that borrowers receive when taking out a loan (among other things). Today, with the official inauguration of Donald Trump as the 45th President of The United States, the CFPB’s future is in jeopardy. The Huffington Post reported that President Trump is taking steps to replace the CFPB’s current Director with Randy Neugebauer, a former Representative from Texas, a potential devasting blow to the consumers protected by Senator Warren and President Obama’s actions. According to the Huffington Post,
“When he was in Congress, Neugebauer opposed CFPB actions like the first-ever federal rule cracking down on payday loans. He labeled the agency’s effort to require payday lenders to take basic steps to ensure consumers can pay back their loans and not get trapped in a cycle of debt as a “paternalistic erosion of consumer product choices.” He introduced a bill to overhaul and weaken the agency.”
Despite a call from the Consumer Federation of America’s Director of Research for President Trump and his administration to take a stand on behalf of the middle class and force companies to put their harmful terms and fees out in the open, the potential appointment of Mr. Neugebauer indicates President Trump may not heed that advice.
FeeBelly supports any efforts to help consumers make easier, more informed decisions, including the steps taken by the CFPB regarding simplifying documents related to mortgages and loans. However, regardless of changes in regulations at the federal level, we’re here to be your fine print detective, empowering you to take control of your financial decisions.
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