Chargebacks911 Founder Monica Eaton was asked to share her expertise regarding financial regulation for consumers as part of a recent interview for Fox26 Houston.
Fox26 Houston, or KRIV, is a television station in Houston, Texas, United States, airing programming from the Fox network. It is owned and operated by the network's Fox Television Stations division alongside MyNetworkTV outlet KTXH.
The Consumer Financial Protection Bureau is in charge of regulating consumer financial services, which is dedicated to regulating banks and agencies in the financial sector. It’s too soon to predict a final outcome, but there's been more talk than ever in recent months about disbanding the bureau in charge of policing the financial industry. Monica Eaton shares what it'll mean for consumer protection if companies are not regulated.
As she explains, “The easiest way to think about what this organization (CFPB) does is to think of it pretty much like the FTC (Federal Trade Commission), only it regulates banks. So, where the FTC regulates businesses to ensure that businesses aren’t scamming consumers, the CFPB is in charge of managing banks to ensure consumers aren’t being charged unfair interest rates and excessive fees.”
The interviewer inquired if the CFPB’s future is in doubt, would this be a good or bad thing for consumers. Monica believes it could be a bit of both.
“In many ways, a lack of regulation could be good news. I think everyone can agree that you can have situations where things are overregulated, making disputes and other processes unnecessarily complex. However, on the flip side, sometimes a good thing could end up creating some negative consequences, like more friction and higher costs that are more difficult to manage.”