Economic News, Savings & Investment, Smart Spending

CFPB to Take On Oversight of Money Transfers

Over the past few years the Consumer Financial Protection Bureau (CFPB) has become an ally to the consumer.  They are the go-to agency for all complaints that have to do with finances and lending.  The Bureau already handles thousands of cases per day, and they are constantly taking on more projects.  The latest addition to their list of services is watching over money transfers.

Money transfers are nothing new.  Places like Western Union have been around for years.  They advertise that the money will get their quickly, and the recipient will not be left hanging.  In fact, you have probably seen their commercials lately as the internet has brought about quite a bit more competition.

The way they work is that suppose I need to send you money.  I go into the store and I choose the amount to send to you.  I pay that store the amount, plus the predetermined fee.  The store I went into sends a notice to the store in your area that says I have paid them adequately and you are now able to pick up the amount I wanted to send.  Basically it is like putting money in one pocket and dispensing it from the other pocket.

Whenever finances are involved, there is bound to be some sort of scam just waiting to happen.  Money transfers have been an easy target for criminals for quite some time.  Unlike banks or other financial institutions, they are quite loosely regulated.  But now, with the help of the CFPB, there are ways to put the pressure on the sleazy money transfer dealers.  Basically anything that is not fair to the consumer, such as slow delivery, false advertisement, unauthorized transactions, frauds, and the like will be handled by the CFPB.  You can check out just what they will be doing on the website.

If you have not been following PrimeRates, you may not know who the CFPB is (I have written about them a few times in the past).  The Bureau is an organization created by the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010.  It opened its doors in 2011 and already takes on hundreds of thousands of complaints annually.  The CFPB is the result of people having felt taken advantage of by those in the financial services and lending industries.  They already handle credit cards, banks, mortgages, auto loans, student loans, and debt collectors.  And they are continually adding more to their scope.

If you have a complaint about nearly anything that has to do with finances, the CFPB is your advocate.   The organization was created to help shift the power back to the people from the big industries.  They are always expanding their services, and they have your back.  You can learn more by visiting