To say that the changes being made at The Consumer Financial Protection Bureau are alarming and bad for everyday consumers is an understatement. The CFPB was created in the wake of the 2008 stock market crash and subsequent recession. During this economic downturn, one in four Americans lost at least 75% of their wealth. 

For example, the CFPB sued three of the nation’s largest banks over their mishandling of the payment service Zelle, asserting that these banks were failing to protect consumers from fraud amounting to hundreds of millions of dollars. As of this writing, nearly all cases the CFPB has brought to the courts to protect consumers have been discontinued or paused. This is an app that is used everyday, by everyday consumers and the CFPB is making sure it is safe.

How we got here

Its mission is clear: “to protect consumers from unfair, deceptive, or abusive practices in the financial services industry.” It is a watchdog agency that provides a single point of accountability for enforcing consumer financial laws and protecting consumers in the marketplace. 

This work includes:

• Rooting out unfair, deceptive, or abusive acts or practices by writing rules, supervising companies, and enforcing the law
• Enforcing laws that outlaw discrimination in consumer finance
• Taking consumer complaints
• Enhancing financial education
• Researching the consumer experience of using financial products
• Monitoring financial markets for new risks to consumers

 

They act as a law enforcement arm against corporations, along with monitoring markets and providing resources for people to educate themselves. They have received 6.8 million complaints from consumers; within that number, over 4.6 million are regarding credit reporting, over 83,000 regarding medical debt collection, and over 96,000 regarding student loans. Holding the financial marketplace accountable ensures that everyone’s livelihoods are protected.

Where we are now

Since taking office, the CFPB has been a target for President Trump and the work of the Department of Government Efficiency. Acting CFPB director Russell Vought, who ordered a stop to all work for 2000 employees, has been clear in his desire and directive to dismantle the agency. While there have been critics of the agency since its inception, it can be argued that the work of the CFPB has changed the consumer financial marketplace, making it more fair and transparent for everyday consumers. The CFPB led the way in taking action against bank overdraft policies and other unfair fees and punitive terms. 

CFPB has been a safeguard for so many individuals. The current administration is leaving the American people vulnerable to the whims of corporations that want to skirt past rules and regulations. Institutions will be able to cut corners, even if that means directly hurting their customers, because no one is watching. 

It is not just an attack from the administration. There is currently a GOP-sponsored joint resolution in the House (H.J. 59) and Senate (S.J. 18) which seeks to remove all caps on overdraft fees, allowing banks to charge whatever they like. 

If you agree that it is important to block the return of predatory bank fees and that removing the financial watchdog that protects Americans from unfair financial practices, call your representatives and let them know.  If you are in Ohio, here are the numbers to call: 

Senator Bernie Moreno: 202-224-2315

Senator John Husted: 202-224-3353

Representative Shontel Brown (Northeast Ohio): 202-225-7032

Here is a sample script:

“Hi, my name is [NAME] and I am a constituent from Cleveland. 

I’m calling to demand [Senator/Representative ______] oppose [(H.J. 59) or (S.J. 18), depending on who you are calling], which would overturn the CFPB rule limiting overdraft fees to five dollars. This rule has the potential to save consumers five billion dollars annually and protects consumers from unreasonable and unpredictable banking fees. 

Thank you for your time and consideration.” 

If leaving a voicemail: Please leave your full street address to ensure your call is tallied. 

(Script provided by the 5 Calls app)