CFPB, FTC Pledge Coordination to Regulate Financial Products
|January 24, 2012|
The Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) signed a Memorandum of Understanding to coordinate efforts to protect consumers and avoid duplication of federal law enforcement and regulatory efforts.
“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.”
With the launch of the CFPB on July 21, 2011, the two agencies now share responsibilities for regulating financial products and services. The Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the CFPB, requires the CFPB and the FTC to work together to coordinate their enforcement activities and promote consistent regulatory treatment of consumer financial products and services.
In the MOU, the agencies have supplemented the requirements of the Dodd-Frank Act to create a framework for coordination and cooperation. Among the points the two agencies have agreed to: