Posted in: Consumer Protection Law Articles
People have the right to be treated fairly and honestly by lenders. Borrowing terms should be easy to understand. When borrowers have a question or concern, lenders should respond to them in a reasonable time and try to resolve issues. When lenders don’t follow these simple rules who can we turn to? Congress enacting The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) in 2010. Part of Dodd-Frank created the Consumer Financial Protection Bureau (CFPB) to protect consumers from illegal and misleading lending practices. The CFPB website explains its goals this way: “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 and stepstools that they need to make smart financial decisions.” On July 21, 2016, the CFPB celebrated its fifth anniversary and published its report card. The CFPB has: Provided $11.7 billion in relief to more than 27 million consumers; Handled nearly one million consumer complaints; Clarified and simplified loan disclosure forms; The CFPB is attacking abusive debt collection tactics. Consumers now have an advocate with enough clout to make a difference. People can rely less on private attorneys to address disputes with lenders and debt collectors. The CFPB saves people money, opens the door for many who otherwise could not get help and gives people the power to stand up for their rights against big companies.