Yesterday, the Consumer Financial Protection Bureau took its first major enforcement action since it began operating a year ago. It ordered Capital One Bank to refund about $150 million dollars to two million credit card customers. Bureau Director Richard Cordray says Capital One's telephone vendors used deceptive marketing to sell add-ons like credit monitoring and debt protection. Democrats created the Bureau in response to predatory lending practices. Republicans are still trying to slow it down. Is the CFPB's the confidence-building action consumers have been waiting for or just more regulation that will swamp the finance industry in government red tape? Instead of a government agency with new powers, would it be better to break up the big banks and return personal finance to a human scale?
Do Consumers Need Protection from Their Banks?
Hey! Did you enjoy this piece? We can’t do it without you. We are member-supported, so your donation is critical to KCRW's music programming, news reporting, and cultural coverage. Help support the DJs, journalists, and staff of the station you love.