Some political analysts expect them to disband theConsumer Financial Protection Bureau(CFPB).
So what exactly is it, and what does it do for consumers?
Many of these institutions, particularly payday lenders, are notorious for preying on consumers.
This created a bubble that eventually burst.
Housing prices in the U.S. fell almost 30% and thestock market fell by about 50%.
We were smack dab in a recession.
Well, people shouldnt have taken out those loans, you might say.
Fine, but were talking a global financial crisis here.
The solution isnt quite that easy.
Perhaps the most important among these is theability-to-repay rule.
In general, lenders now have to double-check you actually can pay back the loan.
Servicers have to credit your payments the day they get them.
Servicers have to give you advance notice if your Adjustable Rate Mortgage is going to change.
This way, you have enough time to submit an utility for loan modification.
you’re free to see afull list of their final rules here.
A Forum to Report Shady Business Practices
The CFPB has amassive database of customer complaints.
you’re able to sort by account key in, date, and company.
They also keep track of consumer narratives, which are optional compliant descriptions from customers.
However, its also useful if youre having problems with your current bank.
Remember thatwhole Wells Fargo fiasco?
If the CFPB gets an onslaught of similar complaints, they investigate the company in question.
They were, in fact,the agency that busted Wells Fargo.
The Federal Reserve accepts consumer complaints atFederalReserveConsumerHelp.com.
The CFPB and FDICalso investigated Discovers credit protection service, which included identity theft protection and credit score tracking.
Discover agreed to refund $200 million to more than 3.5 million cardholders.
The CFPB has alsotargeted payday lenders.
In 2013, they investigated Cash America for illegal robo-signing and illegally overcharging servicemembers and their families.
As a result, Cash America had to refund customers $14 million.
Last year, the CFPBproposed a new ruleto regulate payday lenders, too.
For now, the proposed changes are in limbo.
First of all, the rule doesnt get rid of payday loans at all.
Second, and more importantly, there are other small-dollar loan options.
However, its especially important now tolearn about the dangers of payday lendingand know your alternatives.
TheNational Credit Union FoundationsREAL Solutions programis another initiative that helps borrowers who dont have a lot of money.
Some credit unions also offer signature loans, which are aimed at people with bad credit.
Peer-to-peer loans through services likeKivaandLending Circlesanotheralternative for borrowing money in a pinch.
Where to turn without the CFPB: Under the current administration, many analystsexpect for-profit colleges to rebound.
The best thing you’re free to do when picking a college?
Employed means they actually found work.
Were they employed or employedin their field of study?Theres a huge difference.
TheCFPB websiteincludes educational resources forsetting financial goals,preparing taxes,taking out auto loans, and so on.
Photos:500photos,Kaboompics,Eddie~S,pixabay.
