The national debt continues to rise and consumer debt is showing the same pattern. More people are falling deeper into debt each year and recent analysis suggests that the majority of consumers know very little about the terms and conditions of their credit lines. Credit applications are full of fine print, confusing terminology and hidden information that make it difficult for average consumer to understand. Each year, the Federal Trade Commission receives more and more complaints regarding unfair credit or financial practices. With so many consumers speaking out about being victimized by credit and financial institutions, the government is creating a new agency to better serve consumers.
You Spoke Up, They Listened
The Consumer Financial Protection Bureau (CFPB) is designed to help consumers become better informed so they can choose the financial products and services that are best for them. The CFPB will be monitoring credit and financial companies to ensure they are fully disclosing the details of loans to consumers. Companies will no longer be able to hide important information in the fine print and will be required to present all the loan details in a clear manner to consumers; making it easier for consumers to compare the features of many different financial products. The CFPB will be responsible for monitoring financial business practices and holding companies accountable for meeting new standards. Financial companies that violate these full disclosure laws will be held accountable by the CFPB and could face serious consequences. The CFPB will provide a toll-free consumer hotline for consumers that have questions or complaints. Consumers can find information about financial products and services, as well as compare the benefits and risks of each on their new website.
To learn more visit : http://www.treasury.gov/initiatives/Pages/cfpb.aspx