January 5, 2021

CFPB: Taskforce on Federal Consumer Financial Law Releases Its Report

The Consumer Financial Protection Bureau (Bureau) Taskforce on Federal Consumer Financial Law (Taskforce) released a report today with recommendations on how to improve consumer protection in the financial marketplace. The Taskforce Report uses five interrelated principles that serve as the foundation for proposed systematic changes to the current legal and regulatory framework: consumer protection, information and education, competition and innovation, regulatory modernization and flexibility, and inclusion and access.

Chartered by the Bureau in January of 2020, the Taskforce has examined the existing legal and regulatory environment facing consumers and financial services providers. The Taskforce was in part inspired by the National Commission on Consumer Finance, which was established by the Consumer Credit Protection Act in 1968 to conduct original research and provide recommendations relating to the regulation of consumer credit. To help inform its work, the Taskforce engaged with external stakeholders, including consumer advocates, the Bureau’s combined advisory boards, state and federal regulators, and industry. The Taskforce’s report discusses what it learned during its examination and outreach to stakeholders and offers recommendations for the future of consumer financial protection.

“I want to thank Taskforce Chair Todd Zywicki and members Dr. Howard Beales, Dr. Thomas Durkin, Jean Noonan, and William MacLeod for applying their considerable expertise and experience in consumer protection to prepare an insightful report that will be incredibly valuable to policymakers,” said Consumer Financial Protection Bureau Director Kathleen L. Kraninger. “The Bureau is already committed to many of the recommended ideas presented in the report. The Taskforce recommendations help define and illuminate our current path.”

“On behalf of the Taskforce, I want to thank Director Kraninger, Deputy Director Tom Pahl, and the incredible staff of the CFPB for granting us the opportunity to serve the American consumer in this effort,” said Taskforce Chair Todd Zywicki. “We were animated by the goal of promoting a strong and vibrant system that will protect consumers from harm and enhance access and choice for all Americans. The COVID-19 pandemic highlights the need to provide greater financial regulatory flexibilities and accelerated the adoption of new financial technologies, which raise both new opportunities and new threats for consumers. By leveraging our combined 150 years of professional experience of seeking to improve the health of America’s financial system and the unique experiences and expertise inside and outside of the Bureau, we have created a document that will help provide guiding principles to advance the cause of consumer protection and inclusion for years to come.”

In its report, the Taskforce makes approximately 100 recommendations to the Bureau, Congress, and state and federal regulators to strengthen consumer protection. Among the Taskforce recommendations are the following (listed in no particular order):

To read the Taskforce Report Volume I click here: https://files.consumerfinance.gov/f/documents/cfpb_taskforce-federal-consumer-financial-law_report-volume-1_2021-01.pdf 

To read the Taskforce Report Volume II click here: https://files.consumerfinance.gov/f/documents/cfpb_taskforce-federal-consumer-financial-law_report-volume-2_2021-01.pdf 

This post was originally published here.