The Dodd-Frank Act contemplates the creation of a new
Consumer Financial Protection Bureau (CFPB) within the Federal Reserve. CFPB
would be responsible for consumer protection over financial products and
services offered by both banks and nonbanks, including mortgage lenders,
captive finance companies, credit card issuers, payday lenders, remittance
processors, and anyone else that offers to finance retail goods or services.
Historically, the banks covered by the Act have been supervised and examined
for consumer compliance, however, nonbanks will now be under a new federal
regulatory regime. Also under the Act, the Federal Trade Commission (FTC) will
continue to play an important role in regulating and enforcing the laws with
respect to nonbank financial institutions, in coordination with CFPB.
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