Enforcing Consumer Protection Laws

Do consumers in Illinois need to be concerned about the efficacy of the Consumer Financial Protection Bureau (CFPB) and federal laws aimed to protect consumers from abusive lending and debt collection practices? According to a recent article in USA Today, many of the mechanisms put into place after the housing crisis continue to exist, but we may be living in a period in which politicians are waging a “war on consumer protection.” In short, we have consumer protection laws in place to prevent fraudulent banking practices and subprime lenders from impacting debtors. However, as the article explains, “consumer laws are useless unless they are enforced,” and some legislators are attempting to limit their enforcement.
If you have questions or concerns about your rights as a consumer, you should reach out to an experienced consumer protection lawyer in Oak Park. An advocate at the Emerson Law Firm can speak with you today.
Limited Enforcement Resources Could Result in Harm to Consumers
Generally speaking, consumers are supposed to be able to rely on the government to enforce consumer protection laws, according to the article. However, lawmakers also acknowledge that consumers need to have other recourses when the government does not have the resources to enforce a consumer protection law. Thus “lawmakers have also given injured consumers the power to sue companies that have violated consumer laws,” according to the article. However, consumer protection advocates are that “both options,” meaning government enforcement and the ability to file an individual lawsuit, “are under attack.”
How are measures designed to protect consumers under attack? The article notes that current legislators have proposed a law that would limit the efficacy of the CFPB. Specifically, the CFPB currently has an individual director, which allows it to come to conclusions about handling consumer protection law violations. The proposed legislation, however, would “replace the director with a five-member commission with a maximum of three members of the same party.”
How would such a change impact the CFPB’s enforcement abilities? In short, it could take quite a while for five commissioners to be confirmed, which could delay the CFPB’s capacity to aid consumers. And since more than one person would be making decisions, “a commission split among different parties could easily end up deadlocked and ineffective,” according to the article.
Difficulty Filing Lawsuits
The article intimates that certain actions have also made it more difficult for consumers to file claims when their rights have been violated, for instance, under the Fair Debt Collection Practices Act (FDCPA). In some cases, the costs of filing a claim mean that injured consumers must rely on class actions, and recent Supreme Court cases have barred filing class actions, even when consumers might otherwise be able to file them under state law. Currently, the CFPB is working to conduct additional studies on preserving consumers’ rights to file claims.
Lawsuits concerning FDCPA violations can be complicated, but an experienced Chicago consumer protection lawyer can help. If you believe you have been treated unfairly by a bank or debt collector, you may be able to file a claim for compensation. Do not hesitate to contact the Emerson Law Firm to learn more about our services.
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