Last Friday, the FTC and the Consumer Financial Protection Bureau signed a memorandum of understanding outlining how the agencies will work together. The CFPB — born out of the recent financial system overhaul — and the FTC now share responsibility for protecting consumers in the non-bank financial sector.
Having the CFPB as another cop on the beat in the financial marketplace will be a boon for consumers, especially during this period of financial uncertainty. To ensure the financial marketplace is policed effectively, the FTC and CFPB will coordinate our work to make sure we don’t duplicate efforts.
The agreement establishes clear procedures for working together, which will benefit consumers and businesses alike. Under the new agreement, we’ll let each other know before we start investigations so we don’t end up looking into the same company for the same reason. The agreement also contains provisions to ensure we don’t bring duplicative law enforcement actions. Consumers, businesses, and taxpayers can be assured we’re protecting consumers without wasting resources or imposing undue burdens on the marketplace.
The agreement calls for cooperation in many other areas. The FTC and CFPB will communicate on a regular basis and we’ll weigh in on each other’s policymaking and outreach activities. It also allows us to share information, so we can protect consumers effectively and efficiently.
The FTC and CFPB have been working hand-in-hand to protect consumers since the CFPB came into existence, and cooperation will only improve under the agreement.