Understanding Your Rights Under the Consumer Financial Protection Bureau (CFPB)

The Consumer Financial Protection Bureau (CFPB or Bureau) is essential in most consumers’ everyday lives. This consumer watchdog protects borrowers from abuse by banks, credit unions, lenders, and other financial institutions.

The bureau and its regulations protect consumers. An experienced attorney is the best resource in discovering which protections apply to your situation. Speak with a consumer protections lawyer to learn more and assess available options.

Laws Regulated by the CFPB

The Washington, DC-based government agency is a vital component of US consumer protection law. It handles federal rules regarding bank accounts, credit reports, and debt collection, including debt collector calls, mortgages, credit cards, student loans, and payday loans.

The CFPB enforces several federal financial laws. These laws include:

• Equal Credit Opportunity Act (ECOA): Prohibits lenders from discriminating against borrowers based on race, national origin, sex, marital status, etc.
• Consumer Leasing Act (CLA): Requires “meaningful and accurate” disclosures of lease terms be provided to consumers before they agree to a lease.
• Fair Credit Billing Act (FCBA): Protects you from unfair billing practices and limits your liability on open-end credit accounts such as credit cards and home equity lines of credit.
• Fair Credit Reporting Act (FCRA): Regulates collection of consumers’ data and access to credit reports. The legislation addresses the accuracy of the information obtained by consumer credit reporting agencies and contained in your consumer credit report.
• Fair Debt Collection Practices Act (FDCPA): The law restricts debt collectors trying to collect a financial obligation on behalf of another. For example, the law limits the ways a debt collector can contact you as well as the number of times a day that a debt collector can contact you.
• Home Mortgage Disclosure Act (HMDA): Prevents discrimination and unfair lending practices. It requires that lenders report and keep track of borrowers’ gender and race.
• Homeowners Protection Act (HPA): Requires lenders to inform borrowers when their private mortgage insurance can be canceled.
• Truth in Lending Act (TILA): TILA requires that lenders provide borrowers with certain information, such as the annual percentage rate and loan costs, before credit is extended.
• Truth in Savings Act (TISA): Requires that banks be transparent about the fees they charge for checking, savings, and other deposit accounts.
• Military Lending Act (MLA): The law regulates lending to servicemembers. It caps interest rates on loans to members of the military.
• Real Estate Settlement and Procedures Act (RESPA): Requires that homebuyers and sellers receive complete settlement cost disclosures. The law was enacted to prevent kickbacks in the mortgage industry.

The CFPB enforces the laws by filing an action in a federal trial court or starting an administrative proceeding. The Bureau can ask for both fines and an injunction. An injunction is a court order that compels a person or company to take action or forbids certain actions.

The consumer watchdog recently banned a student loan servicer from servicing federal student loans and ordered the company to pay $120 million for what it described as “wide ranging student loan servicing failures.” In another instance, the Bureau ordered a bank to pay $28 million for its handling of consumer credit reports.

Other CFPB Duties

The CFPB has other responsibilities in addition to enforcing federal financial laws. The agency conducts “Small Business Review Panels” that allow small businesses to provide feedback on proposed regulations that might affect them.

The CFPB also enforces several rules issued by the Federal Trade Commission (FTC). While the FTC enforces antitrust laws, it also protects consumers against unfair and deceptive practices.

The agency also performs educational outreach. It holds webinars on topics of interest to federal consumers and posts information on its blog and website on various topics such as understanding and avoiding scams and identity theft. The agency also provides answers to frequently asked questions involving financial products at “Ask CFPB.”

Filing a Consumer Complaint With the CFPB

You have the right to file a complaint with the CFPB. Many consumers turn to the CFPB after their attempts to resolve an issue with a lender, creditor, or financial institution come up short. The agency says it receives about 25,000 complaints a week. Because of the CFPB’s authority, financial institutions pay attention when they receive an inquiry from the CFPB.

It’s easy to file a complaint with the CFPB. You can file your complaint online, by telephone, or by mail. The consumer watchdog investigates a wide variety of topics, including:

• Checking and savings accounts
• Credit cards
• Auto loans and leases
• Mortgages
• Student loans
• Payday loans
• Debt collection
• Consumer credit reports

You can include documents about your issue in your CFPB complaint. It’s always a good idea to make and keep a document trail related to your matter. This can include emails, letters, notes on phone conversations, and copies of texts. Most companies reply in about 15 days. You can review the company’s response and provide feedback.

If another agency is better suited to help you, the CFPB will forward your request to the other agency. Of course, you should try to resolve things with the financial institution before contacting the Bureau.

 A Consumer Protection Lawyer Can Help

Filing a complaint with the CFPB or against a lender can be intimidating. A consumer protection attorney can review your matter and provide helpful legal advice.

An attorney familiar with the CFPB and consumer protection laws can guide you through filing a claim. They will take your matter to court should that become necessary. Talk to a consumer protection lawyer to learn about your options.