Compliance Blog

Written by Steve Van Beek

There have been many articles discussing which areas the new CFPB will focus on when it receives its powers on July 21, 2011.  The CFPB, itself, has indicated it will work to improve disclosures and pricing information to help consumers make a more informed decision.

However, there are a couple of areas where credit unions can be certain will receive more attention.

Financial Protection of Older Americans.  Here is from a recent CFPB blog post:

"The people just now reaching their sixties are part of America’s largest-ever generation of retirees. The CFPB is creating an Office of Financial Protection for Older Americans to ensure we serve this large community effectively.

This Office will connect seniors with what they need to guide themselves through their financial lives. The Dodd-Frank Wall Street Reform and Consumer Protection Act requires this Office to be active by January 21, 2012. We are building it right alongside the rest of the consumer bureau, and in the coming weeks and months you’ll hear more from us about financial issues for seniors."

The blog post lists a few resources for consumers.  This area is one that will continue to receive attention as fraud issues involving older Americans tend to receive numerous press mentions.  It was just a few months back that FinCEN issued an advisory on reporting SARs in relation to "elder financial exploitation."   

Office of Servicemember Affairs.  Holly Petraeus is heading this new office at the CFPB.  Credit unions should expect additional attention and focus on leading to servicemembers.  This means an extra focus on SCRA issues, Department of Defense payday lending rules, and other issues involving providing financial services to servicemembers.  The CFPB has posted a letter from Ms. Petraeus describing the role of this new office.

Other Offices.  Dodd-Frank also requires other offices to be created within the CFPB.  A glance at the CFPB's planned organizational chart shows offices focused on students, financial education and community affairs.

Bottom Line:  With all the uncertainty surrounding what issues the CFPB will take up first, it is clear the CFPB will have plenty of internal resources to turn to when considering how different consumer groups utilize financial products.