Those who expected the Consumer Financial Protection Bureau (CFPB), Elizabeth Warren’s brainchild, to be a toothless regulator are either sorely disappointed or thoroughly amused, right now. The CFPB has been really busy over the last two (2) months (June - July 2015) fighting to protect consumer rights.

“P” is for Protection

The Consumer Financial Protection Bureau is responsible for protecting the rights of consumers against abuses from the financial industry. Certain populations have a higher likelihood of being targets of various finance schemes. As such, it is no coincidence that two (2) of the companies that the CFPB took action against, during this period, were found to be taking advantage of blacks or military personnel and their families. Additionally, the CFPB has take action action against companies in the medical billing and collections business. It is common practice for medical debt collectors to report adverse information to consumers’ credit reports prior to the consumer even knowing that they owe money. Home owners impacted by the financial crisis, and students are also susceptible to abuses. The CFPB recently addressed businesses who took advantage of these consumers, as well.

Need the Dough

In the last sixty (60) days, alone, the CFPB has sanctioned more than thirteen (13) financial institutions and it has assessed nearly one billion dollars ($1B) in fines and compensation for aggrieved consumers.

This flurry of activity is not unique to the last two (2) months. The CFPB has been very active for the entirety of 2015. One can only hope that it continues. It is obviously a saving grace to the consumers who have been directly affected by the surfaced issues. But, it is equally good medicine for the offending financial institutions. The CFPB helps them uncover blind spots and the improvements should, ultimately, make these businesses more profitable.

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