Before you take out a loan or mortgage from financial institution that is not a bank, you will want to check the registry being created by the Consumer Financial Protection Bureau (CFPB).
The financial crisis of 2008 revealed that although banks
have a great deal of oversight of their lending practices by federal regulators,
other financial institutions do not.
These financial institutions include debt collectors, payday lenders,
and credit reporting companies. Most
importantly, they include nonbank mortgage lenders. Many of these companies are not licensed or
registered with any agency or registry.
When financial companies break consumer laws, they are usually assessed a fine by a court or the CFPB.
However, many companies see these fines as the “cost of doing business”
and proceed to continue their illegal practices. With the creation of this new registry, the
CFPB will be able to track lawbreaking companies, hold them accountable, and
prevent corporate recidivism.
This registry will be used by state attorneys general, state
regulators, and other law enforcement agencies to ensure these companies are
paying their fines and not continuing to participate in illegal activities such
as scams, fraudulent schemes, and other illegal conduct that harms the
public. Most importantly the public,
including investors, creditors, business partners, and average consumers will
be able to vet the financial institutions they deal with.
The Consumer Financial Protection Bureau is an official 21st century government agency that implements and enforces Federal consumer financial law and ensures
that markets for consumer financial products are fair, transparent, and
competitive. It provides financial education for individual consumers on such topics as auto loans, credit cards,
and frauds and scams. It also provides data for researchers on their Public Data Inventory section and provides access to FOAI requests. It also provides legal information on the rules and regulations governing consumers and financial
institutions serving them.
Consumers can submit complaints about financial products or
services by visiting the CFPB’swebsite or by calling (855) 411-CFPB (2372).
Employees who believe their company has violated federal
consumer financial protection laws are encouraged to send information about
what they know to whistleblower@cfpb.gov.
