Op-Ed of the Day: The Consumer Financial Protection Bureau works

We’ve had shows about how credit card companies are using “robo-signing” techniques, aggressive collection tactics, and how racking up debt can ruin your relationship.

How about some positive news in the world of consumer credit?

Consumer protection agency proves its worth,” says USA Today.

Last week, in a deal the CFPB (Consumer Financial Protection Bureau) brokered, American Express agreed to refund $85 million to a quarter million customers who had been fooled by the Blue Sky offer or harmed by other allegedly deceptive or unlawful practices.

The AmEx deal is the third in a string of recent settlements with credit card issuers that illustrate why the bureau was needed — and why it remains a favorite target of bankers and their allies in Congress, who continue trying to defang it. When American Banker, the industry’s bible, proclaimed last week: “Why the CFPB’s AmEx fine should scare bankers,” the publication was spot on. Bankers are on notice that the bureau is on the lookout for a broad range of misleading practices by the once-untouchable industry.

Do you prefer to look on the dark side?

They also ran an opposing point-of-view: CFPB is hurting customers, not helping.

–Stephanie Curtis, social media host

  • Meggan

    I read this on the airplane yesterday. Let’s take a wait and see approach.