The Consumer Financial Protection Bureau (“CFPB”) is a relatively new federal agency tasked with overseeing financial markets and regulating their impacts on everyday consumers. The CFPB “protects consumers from unfair, deceptive, or abusive practices” and it “takes action against companies that break the law.”
The CFPB made the news recently for hitting Wells Fargo with a massive financial penalty; Wells Fargo defrauded its customers by setting up thousands of bogus bank accounts and lines of credit. The CFPB has also come down hard on student loan servicers and debt collectors, most recently slamming the federal student loan income-driven repayment system in a comprehensive report just a few months ago.
This week, however, the media has been reporting on a federal appeals court case involving the CFPB. Some media outlets erroneously declared that the court found that the CFPB was “unconstitutional.” Hysteria quickly followed. Does this mean the CFPB has been gutted? Will consumers and student loan borrowers no longer be protected? Is this a big win for big business over the little guy?Read More