Post Warren, the Battle Over the CFPB is Far From Over
Remember “I’m Just a Bill,” that famous educational video about how a proposed piece of legislation in Congress becomes a law? What the makers of Schoolhouse Rock neglected to mention is that they merely described Step One. Next comes Step Two, in which federal agencies decide the law’s specific rules, and how those rules will be enforced, much like filling in a rough sketch with paint.
President Obama signs the Dodd-Frank Wall Street Reform and Consumer Protection Act, July 21, 2010.
Sometimes there’s even a Step Three, in which Congress tweaks or overturns the law, either in part or in full. This happ
The Federal Reserve Board found that the number of credit cards issued to consumers through universities and alumni groups dipped 17 percent in 2010, according to a report from USA Today. In addition, the number of agreements between these organizations and credit card lenders fell as well, though by a less substantial 4 percent. In all, there are now just 1,004 such accords between these groups and financial institutions.
Five of the nation’s six largest credit card lenders reported that they had to write off fewer defaulted accounts as being uncollectable in June, while only one of them saw delinquency increase, and that was by a miniscule amount, according to a report from the Associated Press. Currently, all but Citibank have reported their monthly credit card business performance to the government.
On July 21, 2009, the Plain Dealer reported that then-Ohio Attorney General Richard Cordray sued debt collection firm National Enterprise Systems Inc., accusing the firm of violating Ohioans’ rights under the Fair Debt Collection Practices Act (FDCPA) and harassing them over past-due debts. Exactly two years later, the Dodd-Frank Wall Street Reform Act, which lays the groundwork for the new Consumer Financial Protection Bureau, goes into effect and Cordray has been nominated by President Obama to lead the agency. I
As the Consumer Financial Protection Bureau (CFPB) gears up to launch this Thursday, I have a few recommendations on behalf of young adults and college students in America. As we know, many in this generation lack the financial literacy necessary to make educated choices when it comes to credit and managing their money. Banks and lenders sometimes take advantage of this, as well. Specifically, I have three suggestions that can further protect this demographic:
Background: If you didn’t read the Credit.com introduction to The Debt Diet and the selection of our five participants, here’s what you need to know to catch up. The Debt Diet is an online behavioral change program to help users get out of debt by putting aside $10 a day. It was developed by Pro-Change Behavior Systems and Jean Chatzky, author of the best-selling Pay It Down and a coach on The Debt Diet series on the Oprah show.