COMMENTARY
New consumer protection agency’s efforts may be hindered for the foreseeable future
By Gustav Schmidt, Esq.
July 21, 2011, marked the birthday of the Consumer Financial Protection Bureau, a new consumer watchdog agency created under the Dodd-Frank Wall Street Reform and Consumer Protection Act that was passed by Congress and signed into law by President Obama in July 2010.
The purpose of the CFPB is to centralize regulatory responsibility and authority over consumer financial products and services, which historically had been spread among a number of governmental agencies, including the Federal Trade Commission, Office of the Comptroller of the Currency and Federal Reserve Board.
The CFPB will be headed by a single director appointed by the president and confirmed by the Senate. The CFPB also will have authority to create and enforce rules and regulations designed to further its stated purpose.
Even though the CFPB is now officially open for business, there is still uncertainty concerning the agency, and many have questioned whether it is even needed. Although regulatory oversight of consumer financial products like home mortgages has always existed, it was never the sole focus of any particular agency.
