Consumer Financial
Protection Bureau
Irene Skricki
April 26, 2012
A (very brief) timeline
2007
• The United States starts facing its most significant financial crisis since the Great
Depression.
2009
• President Obama proposes a consumer-protection bureau as part of Wall Street
reform.
July 21, 2010
• The Dodd-Frank Wall Street Reform and Consumer Protection Act becomes law.
Implementation of CFPB begins immediately under the Treasury Department.
July 21, 2011
• The CFPB becomes a bureau.
January 4, 2012
• Richard Cordray named the first Director of the CFPB
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Our Vision
A consumer finance marketplace…
where customers can see prices and risks up front and where they
can easily make product comparisons;
in which no one can build a business model around unfair, deceptive,
or abusive practices;
that works for American consumers,
responsible providers and the economy as a whole.
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The CFPB Toolbox:
Many Different Approaches
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Supervision/Examination/Enforcement
•
Research, Markets & Regulations
•
Consumer Response
•
Consumer Education & Engagement
• External Affairs
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Scope of Authority
Enumerated Statutes that the CFPB can Implement and Enforce (as listed in
Sec. 1002(12))
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Alternative Mortgage Transaction
Parity Act
Consumer Leasing Act
Electronic Fund Transfer Act
Equal Credit Opportunity Act
Fair Credit Billing Act
Fair Credit Reporting Act
Home Owners Protection Act
Fair Debt Collection Practices Act
Federal Deposit Insurance Act
(selected sections)
Gramm-Leach-Bliley Act (selected
sections)
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Home Mortgage Disclosure Act
Home Ownership and Equity
Protection Act
Interstate Land Sales Full Disclosure
Act
Omnibus Appropriations Act of 2009
(section 626)
Real Estate Settlement Procedures
Act
S.A.F.E. Mortgage Licensing Act
Truth in Lending Act
Truth in Savings Act
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Depository Institution Supervision
• CFPB has authority to supervise and examine banks and credit unions
with assets exceeding $10 billion, their affiliates and their service
providers.
• Dodd-Frank defines "affiliates" to include any person that controls, is
controlled by, or is under common control with another person. (Sec.
1002(1))
• "Service providers" are defined as companies providing a material
service to a covered institution. (Sec. 1002(26)) "Material services"
include designing, operating, or maintaining a consumer financial product
or service and processing related transactions.
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Non-Depository Supervision
Firms Subject to CFPB’s Nonbank Supervision Program Under Section 1024
1. All sizes of nonbank firms that offer or provide:
•
Origination, brokerage, or servicing of residential mortgage loans, or loan
modification and foreclosure relief services related to such loans
•
Payday loans
•
Private education loans
2. For other markets of consumer financial products or services, a “larger
participants” of these markets as the CFPB defines by rule.
•
Initial rule to be issued by July 21, 2012.
•
Issued Notice and Request for Comment on larger participant rulemaking on June
29th, which asked in part how a larger participant in specific industries should be
defined (over 10,400 comments received)
3. Other entities that the CFPB has reasonable cause to determine engage in conduct
that poses risks to consumers related to consumer financial products or services,
after notice and a reasonable opportunity to respond
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Research, Markets & Regulation
Selected Reports Available on www.consumerfinance.gov:
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Impact of the CARD Act of 2009
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Use of Remittance History for Credit Scores and
Remittance Exchange Rates
•
Variation in Credit Scores
•
Fair Debt Collection Practices Act
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Consumer Response
www.consumerfinance.gov
• Consumer Response now accepts complaints related to all
bank products, including:
• credit cards
• mortgages
• all bank accounts
• private student loans
• Help available in 187 languages
• (855) 411-CFPB (2372) (Eng./Esp.)
• TTY/TDD (855) 729-CFPB (2372)
• Tell Your Story portal
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CEE’s Offices
Financial Education
• Provide targeted educational content
• Identify and promote effective fin ed
practices
Servicemembers
• Improve
financial
protection
• Escalate
complaints
• Coordinate w/
DoD, etc.
• 26- 29 million
Older Americans
• Protect against
financial abuse
• Improve
financial literacy
• Planning for life
events
• 50 million aged
62+
Consumer Engagement
• Create interactive, informative
relationship with consumers
Students
• Increase
awareness of
debt in college
choice
• Escalate
complaints
• Build campus
awareness
• 22-28 million
(age 16-26)
Financial
Empowerment
• Improve
financial stability
for working
families/new
entrants
• 30 million
underbanked
• 46 million lower
income
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Welcome to the CFPB
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Feedback?
Know Before You Owe: Student Loans
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ConsumerFinance.gov/askcfpb
Office of Financial Education Objectives:
• Build a comprehensive approach to financial education
in the U.S. Develop knowledge about what works in
financial education and provide opportunities for financial
educators to learn about effective strategies
• Promote innovation:
Test new ideas and share successful
innovations with the field
• Educate consumers: Provide understandable information to
consumers that helps them make informed financial decisions
• Increase federal coordination: Director of the CFPB
serves as the vice chair of the Financial Literacy and
Education Commission
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Build a comprehensive approach to financial education
Build knowledge about what
works
•
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Commission evaluations
of promising financial
education projects
Link financial educators
and researchers with
each other in a learning
network
Strengthen the field
•
Share best practices
•
Four listening sessions
with financial education
practitioners
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Additional webinars
•
Tax-time savings
materials for VITA sites
TITLE YYYY/MM/DD
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Promote Innovation
Identify existing innovations
in the field
Seed new innovations in the
field
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Educate Consumers
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Aspires to be a trusted resource for information for
consumers and practitioners
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Identify and share innovative practices and
communication strategies in financial education
•
Work to provide consumer-focused materials in
everyday language
• Inform
• Motivate
• Help consumers achieve their own financial goals
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Improve Federal Coordination
•
FLEC is a 21-member federal commission charged with
improving coordination on financial education among
federal agencies
•
Dodd-Frank Act names CFPB Director as the vice chair
•
OFE is actively engaged with FLEC working groups
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How to Participate
CFPB Blog: http://www.consumerfinance.gov/blog/
:
https://help.consumerfinance.gov/app/tellyourstory
CFPB Twitter: @CFPB
CFPB Facebook: http://www.facebook.com/CFPB
Go to ConsumerFinance.gov to sign up for our
newsletter.
Weigh in on current rulemakings:
http://www.consumerfinance.gov/notice-and-comment/
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Contact us:
financialeducation@cfpb.gov
Questions?