Many people who live in Tennessee felt the crunch of the Great Recession. As the nation was healing from its economic woes, the Consumer Financial Protection Bureau was created in order to prevent some of the bad lending practices that led to the downturn in the first place. Since its creation, the CFPB has taken a number of actions against companies who prey on unsuspecting consumers.
According to the Penny Hoarder, the CFPB has been responsible for putting $11.8 billion back into the hands of wronged consumers. Some of the companies it has pursued action against include credit reporting agencies Equifax and TransUnion, Well Fargo Bank and student loan servicer Navient.
And yet, many people have never heard of the CFPB, nor do they seem to fully understand its purpose. Young adults, those with limited education and those with lower incomes were found to be the people with the least knowledge about the CFPB and what it does.
Despite the help that the CFPB has provided for millions of consumers, its existence in its current state is in danger. Forbes reports that President Donald Trump has filed court papers claiming that the structure of the organization is unconstitutional. The CFPB is an independent entity in that its chief is not directly accountable to the President. The new federal administration seeks to replace the chief with a board of commissioners that will act in favor of its political agenda. It remains to be seen how this battle will play out in court.
