Growing debate over whether the Consumer Financial Protection Agency should be created over concerns whether the agency would hurt or help consumers and banks. Below,this article gives an overview of what the CFPA will cover and it’s potential for good and bad.
The CFPA was created to protect consumers from predatory lending practices and would have power and oversight over many financial sectors including mortgages, consumer loans, payday loans, real estate, credit cards, debit cards, debt collection, investment and financial investment services. With the ability to impose rules and regulations, the CPFA could impose huge fines on banks and lenders who break the rules. Some of the specifics examples of what the CFPA could do are rewrite truth in lending contracts to make them more consumer friendly, regulate “affiliate” title, escrow, and financing businesses connected to realty firms.
Others argue that the CFPA may not have the full knowledge or understanding of the banking industry and could be more harm than help by adding extra bureaucracy and headache and impede creative options for consumers. In addition, the two parties have not been able to agree the exact responsibilities of the CFPA which is the main reason for debate.
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