8-24-2013: Richard Cordray completed Senate confirmation in July. Funding for the CFPB is controlled by the Federal Reserve – not Congress.
Well, the CFPB, established by the Dodd-Frank bill, has certainly pulled in the reigns and limited mortgage lending definitions amongst other troubling behavior. But one good thing the CFPB is doing is to come down on large banks like Bank of America and others that are not only charging significantly higher bank fees, but artificially and intentionally driving up fees and charges by processing a customer’s withdrawls in an order to create the greatest number of NSF type withdrawls (i.e., bank overdraft fees). For instance, if a customer has $200 left n their account, and has 3 charges totaling $300 – one over $200…then the bank processes the largest one fist, and therefore generates 3 overdraft charges instead of just one. Source: WSJ, “Reguators Turn up Heat Over Bank Fees”, 6-11-2013,Page A1.
Here’s the link to file a complaint.
See my earlier post “CFPB & the Qualified Residential Mortgage (QRM)” dated January 11, 2013.