The Consumer Finance Agency (CFPB) is one of the newest agencies created by the Obama administration, helping consumers navigate through the ongoing financial crisis. This article introduces you to the CFPB, its mission, functions and structure. It also describes what you, as consumers and professionals, can do interactively through the agency’s website. Finally, we are discussing the latest CFPB initiatives to address long-term mortgage, debt collection and credit reporting issues.
SE: Consumer protection law you need to know
History and mission of CFPB
In July 2010, the Dodd-Frank created the Wall Street Reform and Consumer Protection Act officially the CFPB. The Agency intends to eliminate the fraudulent, illegal practices that led to the recent financial crisis in the United States, creating an environment where consumers understand financial risks, credit costs, and product availability, and where business models are based on fairness, honesty, and transparency. The goal is to “make markets for consumer financial products and services for Americans.”
CFPB executes its mission through:
- Education – Helps consumers understand laws and regulations that govern credit cards, student loans, and mortgage loans.
- Enforcement – Enforces laws and regulations, and monitors financial services companies to ensure compliance.
- Research – Gather information and report reports that help consumers and businesses understand consumer behavior, how the financial markets work, and how they can work better.
The agency is an independent arm of the Federal Reserve System, operating as an umbrella to enforce close to 20 rules and regulations that previously spread over seven different agencies. Some existing laws that it is now going to enforce include the Law on Debt Recognition, Fair Credit Reporting Law, the Law on Loan Law, the Law of Real Estate Law (RESPA), the Electronic Money Transfer Act and the Consumer Financial Information Privacy Act. It strives to create additional rules for international money transfers, more comprehensive oversight of non-bank financial services, extended lender requirements to consolidate mortgage information, and examine the borrower’s ability to repay loans.
Structure and management
Richard Cordray, former Ohio Treasurer and Advocate General, heads CFPB. Leadership includes former Federal Reserve executives and experts, Fannie Mae, the White House, various state and federal regulatory agencies and private finance firms. They bring expertise in technology, compliance management, consumer affairs and market analysis to the agency.
Assistant Directors will monitor core business areas, including:
- Consumer education and engagement;
- Research, markets and regulation;
- Supervision, fair lending and equality
External cases – including consumer advisory board, the participation of banks and credit unions and coordination, legislative and government services.
While the agency operates through its Washington D.C. location, a Iowa City Consumer Service and through field initiatives in key areas across the country, the site is the primary portal where consumers can interact and get help.
What you can do through CFPB
On the interactive CFPB website, consumers can make inquiries and complaints, and industry professionals can work with the agency to stop fraud and deceptive practices through the agency’s Whistleblower program.
Know Before You Go Owe is a program that helps consumers understand the credit card details and costs, how to read and understand the real estate settlement (HUD-1) and how to shop for student loans and financial assistance before signing the papers. Consumers who already have loans and credit cards can learn more about what information and information they should get from their lenders.
Consumers can read and comment on the proposed rules, form advisory board, and provide additional information to support CFPB research and analysis.
You can tell about your experiences, good or bad, as a consumer. On telling your story, you can anonymously discuss details that will help agency research and understand what is happening to consumers and how the agency can help.
You can make an official complaint against mortgage lenders and service providers, auto lenders, credit card companies, consumer loans (that is, payday loan lenders), student loan lenders and service providers, banks and credit unions and loan services. You need to create a login and password, and then describe what happened, what products and services you used, identify the parties involved, and discuss how you would like your complaint or problem to be resolved.
Current and former business people can send information and tips directly to the agency by email, or by calling the hotline. You may remain anonymous, but if you choose to identify yourself, you are protected by the US Department of Labor Whistleblower Protection Program.
Recent initiatives for consumers
The CFPB is focused on mortgage settlement with consumer entry as a primary source of information and ideas, and overseeing collection and credit reporting.
In light of the $ 25 billion settlement with the five major mortgage services, the agency will provide greater transparency and accountability across the mortgage market. The agency’s goal is to help consumers avoid unnecessary and unfair foreclosure practices. It will also monitor and enforce specific protection for military service members during the settlement. The agency believes that a consistent monthly mortgage loan format will help consumers understand and handle ongoing costs and fees incurred in their mortgage. For this purpose, it proposes a prototype of monthly statements that all mortgage providers should adopt. The Agency seeks consumer input on the statement to help them create a mortgage statement that better meets consumer needs.
It will oversee the largest collection companies, whose annual earnings exceed $ 10 million, and account for more than 60% of the total debt collection market. This includes companies that collect debt owned by other companies that purchase discounted accounts from the original creditor and collect entire balances later, and lawyers who use litigation as the main fundraiser.
The Agency will monitor the largest credit reporting operators to ensure that lenders receive the right information to make credit approval decisions in the interest of the consumer, and consumers receive credit points that match or reflect more precisely what the lenders receive. The Agency will focus on 30 companies that account for 94% of the annual revenue in consumer reporting.
The Bottom line
CFPB is good for consumers. Because of the widespread authority given to the agency, the user complaints portal can give you a greater opportunity to resolve conflicts when used with your state lawyer and the local Better Business Bureau. It is also good for the business. Whistleblowers help the CFPB know where regulation and enforcement are most needed, and can help burn the environment for regulatory reform and set the stage for creating stronger advisory concerts and commissions for consumers and businesses.
Can it improve conditions? Previously, debt collectors and consumer reporting agencies were not subject to federal supervision. Credit reporting agencies make 36 billion updates to consumer credit reports every year. CFPB regulation and enforcement will provide greater consistency and accuracy in credit reporting and credit scores
Will it survive? The Federal Reserve finances the CFPB. The budget for 2012 is 11% of the Federal Reserve system’s expenditure, and 12% for 2013. The ongoing budget is truncated to 12%, which is adjusted for inflation beyond 2014.
You should get to know the Consumer Financial Protection Bureau. Log in to their website, read the regulations, browse research reports, tell the agency about your experiences as a consumer and provide insights as an industry inspector. You can help with financial recovery.
Options of mortgage regulations in European countries:
- Yacht financing for Dutch from 70% to 100% of the purchase price.
- Maximum duration 12 years
Yacht financing for Belgen and Luxemburger up to € 1.000.000, -. Maximum term 20 years with interest rate tariffs comparable to mortgages for real estate. Maximum loan amount 80% – up to 100% of the purchase amount. Business use is a maximum of 70% of the purchase price and the service is unlimited.
Financing Germans, Austrians and second to 10 years. Maximum power is 75% of the purchase price. 35% of the purchase price can be as block rate (= amortization-free).
Financing Spain and France up to 70% of the purchase price and terms up to a maximum of 12-15 years.
Financing English up to 70% of the purchase price and maximum duration 12-15 years
CE certification for recreational craft (EU Declaration of Conformity)
Very important in the purchase of boats, especially used boats, is proof of EU conformity. Boats that are first used and put into service in the EU must comply with the 10th Ordinance on the Equipment and Product Safety Act (GPSG). In plain language this means that the yacht must comply with the EU-wide harmonized construction and equipment regulations.
The regulation applies to both new and used boats. If a used boat originates from a non-EU country (such as Croatia or the USA) and is first used and put into service within the EU, a declaration of conformity must be submitted. The declaration of conformity confirms compliance with the prescribed standards. Used boats and yachts built before 16/6/98 that have already been commissioned within the EU do not require a CE mark.
Check contract constellation carefully
Once in a while, it does not become apparent to second hand boat buyers whether a dealer offers a boat that belongs to him and that is already in Germany or whether it is the offer of a used boat broker, the yacht outside the EU borders offering. Before you decide, you should inquire exactly who your contractor is. This has important implications for your obligations and your legal position.