In the wake of the economic crisis largely fueled by weak financial regulations and poor consumer protections, the federal government enacted the Consumer Financial Protection Bureau. It was part of the Dodd-Frank Consumer Protection Act, which included a number of elements that shielded consumers from abusive and predatory practices and extended power to hold violators to account.
Now, the Trump administration and Republican Congress have made it clear they intend to weaken the CFPB, and slash other consumer protection too.
Just recently, the Treasury Department issued a report that proposes a major weakening of the act, dramatically reducing the role of the federal government in overseeing the consumer financial services market. In particular, the CFPB would be constrained to a major degree. Republicans have been after the CFPB since it was created and began providing regulatory oversight for seven different federal agencies. While even lenders have seen the value in consolidation of regulatory compliance, conservative lawmakers continue to try to undercut the act and the consumer protection it provides. Continue reading