CFPB, City of Chicago Agreement is Encouraging for all Americans
The Consumer Financial Protection Bureau (CFPB) and City of Chicago have teamed up to protect city residents from predatory lending.
At the announcement in Chicago, CFPB Director Richard Cordray said it is the first time the federal agency has partnered directly with a municipal government.
The crux of the agreement is information sharing: The city will share information it collects on financial scams with the CFPB, and the CFPB will share its analysis, expertise, and mandated enforcement power with the city.
This agreement is in line with other initiatives for Chicago Mayor Rahm Emanuel, who The Hill says “is making fraud protection a top priority.” Other examples include:
- In addition to stepping up information collecting on payday lenders and other financial institutions, Emanuel will introduce an ordinance next week that will require debt collectors to be licensed and enact new regulations, according to a statement.
- Further, the Mayor said he would implement new zoning regulations to limit the number of new payday lenders and auto-title loan stores. These types of stores lead to higher bankruptcy, crime, and financial instability.
- Earlier this year, Emanuel introduced an ordinance that required commercial tax preparers to “inform taxpayers of their rights and disclose any hidden fees, eliminate surprise costs and hard to find fine print.”
So what does it mean?
It’s obviously good news for Chicagoans (which most NCTC staff members are!). But the new partnership is encouraging for the rest of the country as well.
It’s the latest in a long line of actions taken by the CFPB in protecting American consumers. In 2012 alone, the CFPB has taken on student debt, debt collectors, mortgage lenders, military personnel protections, credit card companies, and much more.
When the CFPB was created under the Dodd-Frank Act in 2010, NCTC stressed that the institution itself wasn’t enough; it needed teeth.
So far, under the leadership of Elizabeth Warren and now Richard Cordray, we’ve seen the CFPB come out with a tenacity for fairness and transparency we hope continues for a long time.
By Dan Fair, Manager of Communications & Member Relations