On Thursday July 21, 2011 the Bureau opened its doors.  The Consumer Financial Protection Bureau (CFPB) was created last summer through the Dodd-Frank Act.  The purpose of the CFPB is to protect consumers from deceptive lending practices. The CFPB has faced several challenges from political leaders as the Bureaus power has yet to be defined.  The CFPB currently operates without congressional oversight of its rulemaking power.  Currently the CFPB does not have a leader after Republicans challenged Elizabeth Warren’s role in leading the agency.  To appease Republicans President Obama chose former Ohio Attorney General to lead the agency but his role has also been challenged by leading Republicans. 

Congress has already begun to shorten the leash of the agency.  On the same day of the CFPB’s opening, legislation passed the house which would replace the agency direct with a five-person commission and make it easer to override rules created by the agency.  For now the agency will only have the power to enforce existing consumer protection laws.

David H. Yunghans practices in Bankruptcy with a focus on the Consumer Bankruptcy Group, and he is based in the Cincinnati office of Weltman, Weinberg & Reis Co., LPA. David can be reached at 513.723.2211 or .