Many people are calling for the abolition of the Consumer Financial Protection Bureau (CFPB) which was only recently formed. Why would an agency, charged with the protection of consumers and charged with deterring deceptive practices by lenders be opposed by so many people?

Many people feel that the recent recession was caused, at least in part, by the monied banks and lenders. Many people believe that there was substantial wrongdoing by the banks and other lenders. Many people also believe that the lenders and banks got off without any punishment. All the help went to the banks and very little help has been given to the middle class.

The CFPB is trying to level the playing field. It has brought an action against Capital One claiming that Capital One used deceptive practices to separate people from their money. The action filed by the CFPB used the deceptive practices to take over $150,000,000.00 from people and add to the profit of Capital One.

In this situation, Capital One allowed vendors to sell services to the customers of Capital One. The CFPB is claiming that Capital One gave third party vendors access to its customers. Because the vendors were able to come to the customers of Capital One, there was an implied approval by Capital One that the vendors were good people.

In fact, the vendors used tricks and other deceptive practices to convince the customers of Capital One to purchase goods or services.

A consent order was issued that describes in detail the violations that formed the basis of the CFPB’s action. A consent order is a document that is signed by both parties which means, Capital One has admitted that it broke the rules.

It is expected that more actions will be coming. So why are people wanting to abolish an agency that is punishing a business that injured people using deceptive practices?  Capital One admitted it was wrong and paid money as a result of its wrongdoing.


The banks and lenders are unhappy that someone, anyone is holding them accountable. The banks and lenders are terrified that many other actions will be brought against other wrongdoers.  They know that they have engaged in some of the same bad practices.  The banks and other lenders want to get rid of an agency that holds them accountable for their actions.

About Nathan Davis, Esquire

Born in Charleston, South Carolina, Nathan Davis has been practicing law for many years. Mr. Davis has a wide variety of experiences having practiced domestic relations, criminal law, social security law having also practiced collection law in the past. This knowledge is helpful when someone needs to restart their financial life. The practice is now primarily bankruptcy and debtor representation work, but, Mr. Davis continues to also practice real estate law, trusts and estates and a general litigation practice. I believe that the most important part of representation is trying to leave you better off when the case is finished than when you started. Although I will do as my client directs, I will always tell you if I think that you are making a mistake. Bankruptcy is about a "fresh start". If you do not make changes in what you are doing, you will be doing what you are doing now in the future. There is no shame in bankruptcy or other steps that you may take to start your life over. Too often, people worry more about things than about themselves, their family or their future.
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