Friday, August 21, 2020
CFPBs Kraninger on Financial Education Todays consumers need these skills more than ever. - OppLoans
CFPBs Kraninger on Financial Education âTodayâs consumers need these skills more than ever.â - OppLoans CFPBs Kraninger on Financial Education: âTodayâs consumers need these skills more than ever.âInside Subprime: April 26, 2019By Aubrey SitlerIn a speech to the Bipartisan Policy Center, Consumer Financial Protection Bureau head Kathleen Kraninger expressed what she had gathered during a âlistening tourâ designed to inform potential public safeguards from predatory institutions.While the mission of the consumer watchdog agency has always been to protect consumers and defend against bad actors engaging in unfair and abusive financial practices, Kraninger shifted the focus to consumer education in her speech.âEmpowering consumers to help themselves, protect their own interests, and choose the financial products and services that best fit their needs is vital to preventing consumer harm and building financial well-being,â Kraninger stated.âTodayâs consumers need these skills more than ever,â she said. âFor example, fewer than half of Americans set aside money for the ir childrenâs college education. More and more people reach retirement with incomes and savings that simply wonât meet their needs.âShe also cited data from a Federal Reserve report that found 40 percent of Americans couldnât manage a $400 emergency expense without selling something or borrowing.In February, Kraninger proposed a rollback to the Obama-era payday loan rule, which would have protected consumers from abusive practices of predatory payday lenders, a plan that received harsh criticism from Democrats.A report from the Consumer Federation of America revealed an 80 percent decrease in enforcement activity since 2017, and consumersâ average restitution sharply fell by 96 percent.But a spokesperson for the bureau insisted that Kraningerâs goals were still in line with the CFPBâs intended mission. âIt goes without saying that the director is committed to taking swift action against bad actors,â she told the LA Times. âThe director could not have been more cl ear in her speech: âLet me state emphatically my view that enforcement is an essential tool Congress gave the bureau â" particularly because education, rulemaking and supervision will not prevent every violation.ââBut Kraninger also called for an overhaul of the regulatory process, and stated that financial institutions should âself-examine, self-report, and provide restitution where appropriate.âLearn more about payday loans, scams, and cash advances, and check out our city and state financial guides, including Chicago, Florida, Illinois, Texas and more.Visit OppLoans on YouTube | Facebook | Twitter | LinkedIn
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