“Entering this agreement with the FTC is important to making sure markets for consumer financial products are getting efficient and effective federal government oversight,” said Richard Cordray, Director of the CFPB. “We are both motivated by the same thing: To do right by consumers. We look forward to this partnership.”
The FTC vote approving the MOU was 4-0.
“The FTC has always been committed to protecting consumers and legitimate companies from bad actors in the financial marketplace,” said FTC Chairman Jon Leibowitz. “Now we have another cop on the beat, and this agreement ensures that businesses will not be double-teamed by the two agencies.”
The Bureau of Consumer Protection is mandated to protect consumers against unfair or deceptive acts or practices in commerce. Bureau attorneys enforce federal laws related to consumer protection and rules promulgated by the FTC. Its functions include investigations, enforcement actions, and consumer and business education.
Areas of principal concern for this bureau, especially as it relates to the mortgage industry, are advertising and marketing, financial products and practices, telemarketing fraud, privacy and identity protection. The bureau is also responsible for the United States National "Do Not Call" Registry.
The CFPB also enforces certain provisions of the Graham-Leach-Bliley Act (GLB) concerning privacy and identity protection. The activities mandated under the Safeguards Rule, the requirements to issue privacy notices and opt-out rules to consumers, and the pre-texting (phishing) rules are all required by the GLB and enforced by the bureau.
The issuance of this MOU between the FTC and the CFPB is another positive step in the cooperative efforts of federal bureaus and agencies to protect consumers and help ensure fair treatment in all consumer related financial transactions, as required by the Dodd-Frank Act.