United States Consumer Financial Protection Bureau (Term Paper Sample)

Name Instructor Course Date United States Consumer Financial Protection Bureau The United States Consumer Financial Protection Bureau came to being in 2010 after receiving approval from the congress through the Dodd Frank Wall Street Reform and the dire need to make amendments in the Consumer Protection Act. According to President Obama, there was a need for a body that would protect the public and the economy in cases where the congress failed to act suitably. Some of the areas the act would help protect include those related to mortgages, banking, and credit cards (PBS Newshour). In brief, the CFPB is mandated with several duties that include educating or enlightening consumers with respect to their rights. This is one of the ways through which the US can ensure that consumers’ rights are not violated by unscrupulous institutions. Through the bureau, consumers are also guaranteed that their complaints against certain institutions will be addressed and appropriate action will be taken against the offending party. The bureau oversees financial institutions or companies' conduct by enforcing the set federal consumer legislation. Enforcing these laws curbs unfair, deceptive and abusive acts against the consumers and ensures that legal action is taken against any organization undertaking such acts. CFPB is keen to monitor the potential risks in the financial markets by the acts as a safeguard to consumers from making uninformed or misled decisions with their monies or lifetime investments (PBS Newshour). Currently, CFPB is involved in a number of projects whose aim is to create a safer environment for the economy and consumers in general. It has a Strategic Plan spanning from 2013-2017 cut out in 4 goals that are to be achieved within that period. On the 23rd of December 2013, the CFPB ordered American Express to make a $59.5 million payout to more than 350,000 consumers for illegal practices in its ‘add-on’ credit card business...