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Creation of CFPB

Working with Financial Authorities: Common Challenges and Regulatory Frameworks S ixth Annual African Dialogue Conference Lilongwe, Malawi September 2014 Charles Harwood U.S . Federal Trade Commission. Creation of CFPB.

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Creation of CFPB

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  1. Working with Financial Authorities: Common Challenges and Regulatory FrameworksSixth Annual African Dialogue ConferenceLilongwe, MalawiSeptember 2014Charles Harwood U.S. Federal Trade Commission

  2. Creation of CFPB • Since 1938, FTC has had consumer protection authority over companies (other than banks) offering consumer financial products and services • In 2010, US Congress passed a law creating the Consumer Financial Protection Bureau • Consumer protection jurisdiction over any company offering or providing a consumer financial product or service

  3. FTC and CFPB • FTC enforcement authority was not changed • FTC to continue enforcing consumer protection laws • Fraudulent financial products • Debt collection • Payday lending • New law required to agencies to cooperate and coordinate enforcement

  4. FTC-CFPB MOU • Agencies signed and distributed a Memorandum of Understanding (MOU) to create and implement a framework for coordination and cooperation • Meet regularly to coordinate • Inform the other agency prior to initiating an investigation or bringing an enforcement action • Consult on rulemaking and guidance initiatives • Cooperate on consumer education • Share consumer complaints

  5. FTC-CFPB Coordination • What does “coordination” mean? • Ensuring agencies know what each other is doing • Ensuring consistency in approaches (where practicable and appropriate) • Avoiding unnecessary duplication of efforts • Avoiding adverse impact on ongoing investigations • Avoiding unintended “double-teaming”

  6. Coordination Plan • Senior management-level meetings twice a year • Mid-level management meetings on a quarterly basis • Staff-level working groups meet on a regular basis • Frequent informal communications among staff • Agencies notify each other when opening investigations • Agencies notify each other when filing law enforcement actions • CFPB Supervision notifies FTC when commencing an examination

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