A University of Houston professor breaks down what’s at stake.
HOUSTON — A high-stakes battle is unfolding in Washington over the future of the Consumer Financial Protection Bureau, the agency that protects Americans from fraud, scams, and financial abuse. Critics want to dismantle it, while experts warn its disappearance could leave families exposed.
The administration says the CFPB may run out of funding early next year. Its current funding source, the Federal Reserve, is being challenged as unlawful. Without it, the agency may no longer be able to operate.
The CFPB handles complaints about banks, credit cards, loans, and financial scams. It also provides essential financial education, from buying a car to planning for retirement.
Dr. Barbara Stewart, Chair of Human Development and Consumer Sciences at the University of Houston said, “The loss would be the inability to have some redress, some complaint resolution, as well as some educational materials that would no longer be available. Consumers might have a complaint, they might have a problem, but they wouldn’t have a place to go to seek remedy.”
Stewart advises families to keep personal and financial information secure, avoid responding to unsolicited inquiries, and never share sensitive details unless they initiate the conversation.
Lone Star Legal Aid is also sounding the alarm. Litigation Director Dena Karni warns that civil courts could see a surge in cases the CFPB normally handles.
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