Consumer Protections Are Under Attack!
By Nancy Wilberg Ricks, Senior Policy and Communications Strategist, NCLR
Latino families have benefitted from consumer protections that were created to prevent another economic crisis. These protections were established through the Dodd-Frank Act of 2010. As you may know, Dodd-Frank created a new federal agency solely dedicated to serving the consumer—the Consumer Financial Protection Bureau (CFPB). Since the CFPB opened its doors in 2011, we have seen a more consumer-focused economy for the 21st century.
Many families have already benefitted from the CFPB:
- It made wiring money abroad easier and more transparent.
- It eliminated many bad credit card practices.
- It wiped out many mortgage lending tricks and traps that got us into the housing crisis.
These successes are very important to ensuring that families, not just the banks, thrive. Unfortunately, they are under threat by policymakers striving to roll back strong regulations. Take a look at some of the changes being proposed:
- Impairing the Bureau’s strong leadership. One problematic proposal is to replace the CFPB’s director with a less effective team of five commissioners. Historically, five-member boards have hobbled decision-making and increased gridlock.
- Chipping away at its funding. As with every banking agency, the CFPB’s independent funding insulates it from the partisan attacks. Dodd-Frank established this funding stream of nontaxpayer dollars for the Bureau from the Federal Reserve.
- Imposing unwarranted bureaucratic burdens and diminishing authority over nonbanks. In 2010, Congress gave the CFPB authority to oversee previously unregulated entities, such as debt collectors, remittance providers, and payday lenders—industries that have taken advantage of consumers with high fees and unscrupulous practices.
Many of you helped achieve these victories for families by supporting the CFPB. We need your help once again. Lend your name to our petition and help protect the CFPB from these harmful proposals!
