United States Consumer Financial Protection Bureau (CFPB) has announced today (7/16/12) that it is beginning oversight of credit bureaus. As you may or may not know, the CFPB was the idea of Elizabeth Warren. The CFPB is the federal agency that holds primary responsibility for regulating consumer protection in the United States.
Today’s announcement stated the establishment of a new rule creating the first federal program to supervise consumer reporting agencies, which include the three big national credit reporting companies as well as other companies involved in credit reporting. This is really starting to sound great, right? This is exactly what we need, right?
I am skeptical of today’s announcement. Skeptical initially because of the politics of the CFPB. The CFPB seems like a toothless tiger. If you read their announcement you heard their roar. You are about to see them sink their toothless gums into the arrogant credit reporting agencies.
I am skeptical of the CFPB because it has been a compromise since it’s inception. Elizabeth Warren was slated to lead the Bureau. She is a tough and honest person. She is an Bankruptcy expert. She is a Harvard professor. She is a Democrat. She was dumped from the running for director after Obama administration officials became convinced she “could not overcome strong Republican opposition.” The bottom line is that the CFPB is a political pawn for the two Parties to play with instead of doing what is best for their constituency. This isn’t unusual in Washington…
The bureau is tasked with the responsibility to “promote fairness and transparency for mortgages, credit cards, and other consumer financial products and services.” The CFPB is funded by the United States Federal Reserve, with interim affiliation with the U.S. Treasury Department. As most of you know, the Federal Reserve is owned by the 12 Central banks, not the US Citizens as widely believed. There is no way the banks are going to indirectly give themselves strict fines and straighten themselves up.
Also, I am skeptical based on the CFPB’s power to enforce violations. I have yet to find any enforcement available to the CFPB. What are they going to do when they find violations? Fine a Credit Report Agency and give the money to the Fed and not the victims? We will see if they find violations and what they do about it. My hunch is if they find violations, there will be a gentle slap to the wrist.
So my advice to you is to not stop doing what you have been doing to fight the banking and collection agency crooks. You still need to plan your work, then work your plan. Please don’t count on a quasi-governmental agency to solve your problems.
You need to be aggressive in your plan. If you are fighting the banks and collection agencies you need to file the right paperwork and dispute everything. You need to be prepared to fight them legally. To do this you must educate yourself. Start today.
Fight the essential fight,