Consumer watchdog begins supervising ‘nonbank’ companies

January 6, 2012 Off By administrator

Consumer watchdog begins supervising ‘nonbank’ companies
News from NASDAQ:

On his first full day as director of the federal consumer financial watchdog agency, Richard Cordray announced the start of closer scrutiny of nonbank financial services providers such as payday lenders, check cashing stores, credit bureaus and debt collectors.

“Holding banks and nonbanks accountable to consumer financial laws will help create a fairer, more transparent market for consumers,” Cordray said Thursday. He announced that his agency, the Consumer Financial Protection Bureau, will launch a program to oversee an array of financial services companies that previously have not undergone extensive federal examination of their operations.

Cordray made the announcement during a speech at the Brookings Institution in Washington, D.C., a day after President Obama made a controversial recess appointment making Cordray director.

“The installation of Mr. Cordray as director means that consumers can now be protected against a full array of financial practices…………… continues on NASDAQ

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Obama’s Consumer Watchdog Targets Mortgage Firms, Payday Lenders
News from BusinessWeek:

Jan. 6 (Bloomberg) — Richard Cordray’s appointment as director of the U.S. Consumer Financial Protection Bureau moves the new agency nearer to fulfilling its intended role as a one- stop shop for borrower safeguards.

Unlike the historically patchwork oversight of consumer finance, the bureau centralizes the federal government’s authority and in some cases extends it. Consumers may benefit from its reach whenever they take out a payday loan, negotiate a mortgage rate, borrow money for school or pay a credit card fee. For those who think they’ve been wronged, there will be a complaint system to help them fight back.

Cordray, 52, who was seated by President Barack Obama on Jan. 4 over Republican objections, takes over a bureau created under the Dodd-Frank Act in response to complaints that existing regulators didn’t do enough to protect consumers before the 2008 credit crisis. The rules overhaul shifted consumer protection from regulators responsible for banks’ fin…………… continues on BusinessWeek

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