The Consumer Financial Protection Bureau and the Federal Trade Commission Case Study

Exclusively available on Available only on IvyPanda®
This academic paper example has been carefully picked, checked and refined by our editorial team.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment

In the United States, numerous laws exist which grant rights to consumers and generally protect their well-being. The Consumer Financial Protection Bureau and the Federal Trade Commission are two government agencies that enforce such laws. The former is responsible for ensuring that lenders, banks, and other types of organizations offering financial services do not violate the existing regulations. The latter is a bipartisan agency that aims to protect consumers and promote competition by preventing fraudulent and deceptive practices in the marketplace. The two organizations are essential for the economy of the United States and ensuring that merchants observe the rights of consumers.

The Consumer Financial Protection Bureau (CFPB) has several functions and subsequently provides a variety of legal protections to consumers in the sphere of finance. Namely, the CFPB is tasked with protecting consumers from unfair acts and practices by creating rules and enforcing laws, and outlawing consumer discrimination. The CFPB applies several rules, regulations, and laws in order to deliver on its responsibilities. The main ones include Equal Credit Opportunity Act, Home Mortgage Disclosure, Fair Credit Reporting, and Fair Debt Collection Practices Act (“Code,” n.d.). The CFPB’s activity goes according to the following steps: consumers file a complaint, the bureau reviews it and forwards it to the company, which then responds, and the bureau takes appropriate actions.

It is clear that the CFPB performs work that is extremely significant for the protection of customer rights in the United States. The agency directly assists citizens in events involving fraud, as well as generates invaluable regulations which help prevent such cases in the future. For instance, recently, the CFPB ordered California Auto Finance to pay a civil penalty and refund its customers their funds for illegally charging their clients interest for late payment (“United States of America Consumer Financial,” 2021). Another recent case concerned the CFPB issuing a request to the federal district court to order DMB Financial, LLC to pay consumers at least $5.4 million for charging unlawful fees (“United States district court for the district of Massachusetts,” 2021). Thus, based on these two cases, I can be concluded that the CFPB tends to impose financial penalties.

The Federal Trade Commission (FTC) is another important agency that ensures the protection of consumers’ rights. The FTC has investigative, law enforcement, and rulemaking authority which means that it can protect consumers by issuing cease and desist orders to merchants, prosecute them for violations, and order civil penalties (“A Brief Overview,” 2021). Since the FTC possesses considerable authority, it enforces a large variety of regulations and laws. For instance, it applies the Federal Trade Commission Act, Clayton Act, Bankruptcy Abuse Prevention, and Consumer Protection Act of 2005 (“Statutes,” n.d.). The FTC works according to the following steps: it receives a complaint, reviews it, and makes a decision on whether to charge the merchant, as well as imposes civil penalties. For example, recently, it ordered Age of Learning, a children’s education company, to pay $10 million and change its billing practices for failing to reveal important information to consumers (“United States district court central district of California,” 2021). Such examples show that the FTC is necessary for the country’s commerce since it ensures that the marketplace is free from different types of fraud.

The Consumer Financial Protection Bureau and the Federal Trade Commission are two government agencies that are responsible for protecting consumers’ rights. These government bodies can review citizens’ complaints and act on them, ordering organizations that violate laws and regulations to pay penalties. The Consumer Financial Protection Bureau and the Federal Trade Commission significantly benefit the country’s commerce and finance since they prevent companies from offering fraudulent services.

References

. (2021). The Federal Trade Commission.

(n.d.). The Consumer Financial Protection Bureau.

(n.d.). The Federal Trade Commission.

United States district court central district of California. (2021).

United States district court for the district of Massachusetts. (2021). .

United States of America consumer financial protection bureau. (2021). .

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2022, October 25). The Consumer Financial Protection Bureau and the Federal Trade Commission. https://ivypanda.com/essays/the-consumer-financial-protection-bureau-and-the-federal-trade-commission/

Work Cited

"The Consumer Financial Protection Bureau and the Federal Trade Commission." IvyPanda, 25 Oct. 2022, ivypanda.com/essays/the-consumer-financial-protection-bureau-and-the-federal-trade-commission/.

References

IvyPanda. (2022) 'The Consumer Financial Protection Bureau and the Federal Trade Commission'. 25 October.

References

IvyPanda. 2022. "The Consumer Financial Protection Bureau and the Federal Trade Commission." October 25, 2022. https://ivypanda.com/essays/the-consumer-financial-protection-bureau-and-the-federal-trade-commission/.

1. IvyPanda. "The Consumer Financial Protection Bureau and the Federal Trade Commission." October 25, 2022. https://ivypanda.com/essays/the-consumer-financial-protection-bureau-and-the-federal-trade-commission/.


Bibliography


IvyPanda. "The Consumer Financial Protection Bureau and the Federal Trade Commission." October 25, 2022. https://ivypanda.com/essays/the-consumer-financial-protection-bureau-and-the-federal-trade-commission/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1