The Covid Help from the Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau is the US agency responsible for the protection of consumer rights in the financial sector. The CFPB covers a wide range of functions including Banks, Credit unions, Payday lenders, Mortgage servicing options, foreclosure relief services, debt collectors and financial companies operating in the United States.

Protecting the consumer rights of the country after the Great Housing Meltdown, creating the CFPB became a top governmental priority.  The CFPB is an independent body that responds to consumer complaints through the complaint database and directs relevant companies and regulatory bodies to respond to them. Not just collecting and tracking consumer complaints, The CFPB makes and enforces rules for financial institutions and examines both banking and non-banking financial institutions.

The CFPB also served to protect consumers having financial problems due to coronavirus. During the COVID-19 pandemic season, the US government made significant efforts to protect consumers’ livelihoods and initiated different programs to provide millions of businesses, landlords, tenants and unemployed people with debt enforcement protection.

As a result of the CARES act, Millions of Americans got financial benefits through the Economic Impact payment which is disbursed by the Internal Revenue Service (IRS). 

The Advance Child Tax credit program provided support to families during the coronavirus pandemic. Millions of American families received financial help to offset the cost of raising children during the Pandemic.

Furthermore, unemployed workers could receive enhanced Federal Unemployment benefits as a result of the coronavirus pandemic. If anyone loses their job or part of their income, they can apply for Federal Unemployment Benefits subject to meeting specific criteria.

CFPB also provided various protections regarding Mortgages, Credit cards, Credit reports and scores, Savings and student loans. Further, CFPB also takes necessary actions against frauds with consumers related to fake investments and other scamming activities under the financing sector. During the Coronavirus season, scammers take advantage of the situation by making false claims and scamming activities like Fake coronavirus charity scams, Vaccine related scams, Unemployment benefit scams and many others. To cope with this serious issue, CFPB spread awareness on how to avoid scams and not become a victim of fraud. Specific guidelines and procedures are posted on CFPB’s official website.

As Pandemic moratoriums end across America, Foreclosure has become a hot topic in the US, as many people are facing problems in paying mortgage charges, In response to these nearly 900,000 struggling homeowners, the CFPB has issued comprehensive guidelines on how to fix these mortgages and avoid foreclosure.  

The most important role CFPB is playing nowadays is helping Landlords, Tenants and homeowners. As covid-19 left no one unaffected, these people are most affected. Landlords are in crisis because tenants are not able to pay rent and a moratorium is in place that is preventing landlords from taking any action. Homeowners are worried about their monthly expenses and mortgage payments. Many tenants are left with empty pockets. In each case, various programs under the CARES act have been launched to provide avenues for Landlords, Tenants, and homeowners.