(CFPB) exists to watch over consumer rights and prevent them from being exploited by greedy financial companies.

Financial Protection Agencies

Credit Card Protection, Fund Recovery

Every year, millions of individuals are victimized by financial fraud, exposed to abusive practices, dragged through financial struggles with various banks, or even discriminated against when trying to apply for credit. Most of the victims of these unfair experiences all end up feeling hopeless due to the financial strains placed on them against their will without the knowledge of who to turn to for help. 

Such risks are the reason why the consumer financial protection bureau (CFPB) exists to watch over consumer rights and prevent them from being exploited by greedy financial companies. It doesn’t matter if you’ve experienced any form of financial fraud or not because the bureau is designed to help protect everyone regardless of the amount of money you may have.

What is the consumer financial protection bureau (CFPB)?

The consumer financial protection bureau, otherwise known as CFPB, is a federal agency established in response to the financial crisis that occurred in 2008 and the great recession. During this period, millions of Americans lost their livelihoods and homes to foreclosure, and the crisis placed the many deceptive and unfair practices of mortgage lenders in the spotlight. It also created the need for regulation of the existing financial service companies with the end goal of helping consumers better identify and understand the risks associated with different types of mortgages available as well as many other financial products. 

The CFPB is guided by the Consumer Financial Protection Act of 2010, its creator, which grants the Bureau Board the rightful authority to protect consumers from such deceptive malpractices by financial services as create a database through which consumers can submit any consumer financial protection complaints about these financial service providers.

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Types of consumer financial scams

1. Identity Theft

While someone may differ from you entirely when it comes to looks, they can steal your identity. This might occur when someone steals your personal information, including your name, bank account number, Social Security number, as well as credit card information. Often a time such fraudsters use data mining to get access to all this information on you. 

These scammers’ goals would be to infiltrate you as an imposter and use your personal information to access your bank accounts and drain all the funds held in them. They may even take their game further by taking out loans in your name, using your insurance to pay for their bills, and file tax returns to collect all your refunds. 

2. Mortgage Fraud

There are thousands of mortgage frauds that the authority deals with every year and today’s fraud schemes target the most distressed homeowners available. Such scams can include loan modification schemes, foreclosure rescue schemes, and even equity skimming, among many others, and are often schemed by real estate professionals together with mortgage specialists who put their knowledge and skills into derailing the vulnerable. Most of the time, such scams would demand payment of fees before being given the services offered, a loan modification that ends up being a fluke, or fraudulent contacts with loopholes meant to run your wallets dry. 

3. Credit Card Fraud

This is defined as the unauthorized use of a credit or debit card to obtain any amount of money or property fraudulently. The fraudsters obtain private information about the card and use it to make various purchases while posing as you. It is the most common type of consumer fraud in the market. It can be noted whenever your account statement changes without your recognition, you experience an unexpected drop in your available credit balance, or whenever you receive suspicious phone calls and emails requesting credit or debit card info. 

4. Forex scams

The Forex market (FX) is currently the world’s largest trading market with a daily estimate exchange size of about 5 trillion dollars. Since there is no regulated, centralized exchange available, scammers are increasing daily to take advantage of unaware investors. Some of the most common forex scams include: 

  • Signal seller scams
  • Boiler room scams
  • High yield investment programs
  • Manipulation of bid/ask spreads.
  • Scams through various software
  • Managed accounts scams
  • Boiler room scams
  • Pyramid scheme scams

The Consumer financial protection bureau deals with many complaints of forex scams daily, especially with new investors who may have lost thousands of dollars to fraudsters. 

5. Deceptive Robocalls on Interest Rates

This mainly targets credit card fraud because it involves getting phone calls from scammers who pose as customer service staff from your credit card company. These robocalls guarantee you a reduction in credit card interest and ask for your personal information through which they can use to commit identity theft. 

6. Fake Charities

Some people are extremely charitable and have giving hearts to the less fortunate. Fake charities tend to use the same technique as robocalls to steal your money that legitimate charities use to raise their funds.

What if I'm a victim of consumer financial fraud

If you happen to be a victim of financial fraud of any kind, you can submit a complaint to the Consumer Financial Protection Bureau for them to take action. This is a consumer financial protection agency that helps recover funds lost through exploitation by the above types of financial scams, among others.

How the complaint process works

Once you have submitted your complaint to the CFPB, or through several processes or steps that enable you to get an active and positive response on your financial issue, these steps include:

1. Complaint submitted

You can submit your complaints about any consumer financial product to the CFPB or any other consumer financial protection agency, and you would receive email updates on the progress. You can even track the status of your complaint through the website.

2. Review and route

Your complaint and documents provided are forwarded to the company, and a response is awaited from them. 

3. Company response

Once the company reviews your complaint and communicates with you within 60 days, failure to which legal action would be taken was declared a fraud. 

4. Complaint published

With your consent, your complaint can be published after all the personal information is removed from it. 

5. Consumer review

Once the company responds, the consumer would have within 60 days to provide feedback about the response.

Conclusion

Don’t remain silent whenever you experience any financial scam or notice an occurrence because complaints submitted to the CFPB help enforce federal consumer financial laws that protect your financial rights and prevent similar fraud cases in the future. 

Finally, if you happen to have lost your money due to fraud or misleading information by brokers, you can file a complaint with Trader Defense Advisory for reversal services.