Not many Americans are aware of the Consumer Financial Protection Bureau. That is indeed a scary notion for the American citizens because the federal agency which was established in 2010 is slowly trying to take control of their lives by hitting them where it hurts the most – their wallets. The federal agency’s unreasonable fight against helpful financial products like payday loans and their providers, the payday moneylenders has already financially hurt millions of underprivileged American citizens, who are not considered worthy enough for a membership in the traditional banks – the major defaulters behind the financial collapse of 2008, ironically one of the reasons behind the inception of the Consumer Financial Protection Bureau.
People need to be aware of the fact that the federal bureau which has been publicized as. ‘the watchdog of American Economic practices’ is actually more than a mere watchdog. It is an agency which holds the most power and minimal accountability. It is the first time in the history of Washington bureaucracy that such a level of unquestionable authority and power had been meted out to one organization. One could argue that it serves as a picture-perfect illustration of the political left’s treacherous belief that the ends at all times validate the means.
The federal agency did actually start off as an organization with an imperative mission. But it was strategically and quite conveniently designed by Democrats to dodge checks and balances. No other regulatory agency in the history of the country has held such allowances, even the ones who are accountable for consumer and investor safety. The strange, unique and faulty design is precisely why a panel of three federal judges declared that the Consumer Financial Protection Bureau is organizationally unconstitutional.
In its current arrangement, the federal agency is an insult to the Constitution. It is an affront to checks and balances and any other due procedure. That is why there has been a roaring support for the Financial CHOICE Act. This act can vicissitude the Consumer Financial Protection Bureau from an unconstitutional and in many ways un-American agency of non-elected officials into a constitutional and responsible civil administration agency that imposes consumer protection regulations developed by the Congress.
The Consumer Financial Protection Bureau’s present director, Richard Cordray, irresponsibly disregards the due procedure protections that have always been profoundly entrenched in our country’s legal system ever since it gained independence in 1786. This exploitation may produce headlines, but it might ultimately fail to attain justice. The Dodd-Frank Act gives the highly controversial director extremely wide-ranging powers to control consumer credit goods, still, Cordray continually ignores the law and the resolve of Congress by tip toeing around existing laws.
In the court’s verdict that stated that the Consumer Financial Protection Bureau’s structure was unconstitutional, the judges discovered that Cordray singly re-explained the law and then fundamentally shaped his personal law. Adding to that, the court also stated that Cordray had overlooked the ruling of restrictions to rationalize imposing an enormous penalty on an American corporation. This is a disgraceful defilement of due procedure rights.
In this argument, it must be remembered that rightful consumer protection places control in the hands of citizens, not well-off Washington officials and bureaucrats. Rightful consumer protection encourages competition and options, ensuring that every consumer has an access to honest and advanced markets that are dynamically regulated for scams and trickery. The Financial CHOICE Act holds the hardest penalties in for anyone committing financial scams, anyone caught engaging in insider trading or other forms of deception. Unlike the CFPB, it doesn’t aim to abolish helpful products like payday loans, but it aims to catch the real perpetrators.