Are businesses, including lenders, hurting from financial regulations and consumer protections under the Dodd-Frank legislation enacted by Democrats in 2010?
President Trump thinks so.
Trump signed an executive order Friday ordering an administrative review of the landmark Dodd-Frank Wall Street Reform Act, with an eye toward revising or eliminating parts of the law.
That puts the work of the Consumer Financial Protection Bureau at risk of being diminished or wiped out. The CFPB was created under Dodd-Frank to enforce consumer protection laws. The agency has crafted a range of new rules that apply to mortgage lenders, banks, credit card companies and other financial firms. The CFPB has sued a range of lenders on charges of misleading or defrauding consumers. The products linked to these lenders sued by the CFPB include prepaid cards, payday loans, student loans, auto loans and mortgages.
Payday loans often trap borrowers in a cycle of debt, something the CFPB has taken aim at with a proposed rule that would require lenders to ensure that borrowers could pay back these loans.
The agency has also cracked down on providers of other financial products, such as prepaid cards, an increasingly popular borrowing sector, with low-income earners and people concerned about racking up debts increasingly relying on them. These cards come with high fees that aren’t always made clear to consumers.
Dodd-Frank laws also created a unified complaint hotline and database, operated by the CFPB. After receiving a complaint, the agency works with financial companies to resolve complaints. The CFPB says it has handled more than 1 million complaints.
The Bureau has also targeted unscrupulous debt collections A report this released by the agency found that over one-in-four consumers contacted by debt collectors felt threatened. The report was drawn from the first-ever national survey of consumer experiences with debt collectors.