Consumer Compliance- Discussion Post 4 - Assignment Example

Consumer Compliance- Discussion Post 4 Consumer Compliance- Discussion Post 4 FTC and CFPB are agencies that work hand in coordination to protect consumers against exploitation by financial institutions. The two organizations share some function while in other areas, they offer distinct services to customers. Both bodies offer advice to consumers on how to negotiate and get the best interest rates. Both agencies use dealers in negotiation of rates by banks on behalf of customers. FTC and CFPB have a commitment to ensuring that consumers receive fair chances on auto finance by collecting and imparting information for consumers (Henry, 2014).

CFPB and FTC both have limited powers to sue any party but are free to intervene in the litigation. Both agencies coordinate their activities in ensuring elimination of task duplication. For instance, both bodies would inform each other of an investigation and enforcement of actions against any party that exploits consumers. FTC and FFPB both conduct a joint customers’ education in promoting consistency of information and proper knowledge about the use of resources (FTC, 2012).CFPB protects consumers against exploitation by banking institutions and credit unions.

FTC, however, does not serve to protect consumers over banks and credit unions. FTC develops auto financial tips on its website in conjunction with American Financial Services Association and National Automobile Dealers Association. CFPB, however, does not provide financial tips. CFPB gathers consumers’ complaints on its website and forwards them to relevant authorities that resolve consumers’ grievances. The strategy that CFPB uses in consumers’ protection is strict and firm while FTC’s web site is neutral and adopts no strict measures in solving the problems of customers (Consumer Financial Service Group, 2011).

According to policies framework of the two agencies, it is evident that CFPB offers protection to consumers, particularly by stipulating harsh measures against parties that exploit consumers.ReferencesConsumer Financial Service Group. (2011, July 7). How the CFPB and the FTC interact (part 1). CFPB Monitor. Retrieved May 13, 2015 from http://www.cfpbmonitor.com/2011/07/07/how-the-cfpb-and-the-ftc-interact-part-i/Federal Trade Commission (FTC). (2012, January 23). Federal Trade Commission, Consumer Financial Protection Bureau Pledge to Work Together to Protect Consumers.

Press Release. Retrieved May 13, 2015 from https://www.ftc.gov/news-events/press-releases/2012/01/federal-trade-commission-consumer-financial-protection-bureauHenry, J. (2014, March 27). CFPB, FTC Web sites differ in tone. Automotive News. Retrieved May 13, 2015 from http://www.autonews.com/article/20140326/BLOG13/303279997/cfpb-ftc-web-sites-differ-in-tone