Research On Us Consumer Financial Protection Bureau

In2007, a global financial storm began to emerge, and spread to main financial markets. It was out of control in2008, leading to unsteady financial system in US and enormous pressure on world economy. To cope with financial crisis, stimulate the economy, strengthen regulation of financial institutions and prevent systematic financial risks, US government implemented profound reform on financial regulation legislation. In Jul.21, President Obama officially signed "Dodd-Frank Wall Street Reform&Consumer Protection Act". Claimed as the strongest reform act with the most powerful, influence ever since the Great Depression in1937, it reflected the introspection of the entire US government, Congress, as well as legal and academic circles. Among several reform actions, the prominent one is to set up a completely new organization in current financial supervision and regulation system, which is, Consumer Financial Protection Bureau.Initially defining the concept of financial consumer, this article introduces the rules of CFPB in "Dodd-Frank Act", analyzes and evaluates them. Combining the condition of China’s financial consumer protection, the author argues that we should absorb others’advanced experience, at the same time, stick to China’s reality. Through determining the legislation and protection path, we should construct the proper financial consumer protection system, which is corresponding to the development of our financial market.This article is divided by three parts:Part Ⅰ is about the legislation retrospect of US financial consumer protection. In this part, at the beginning, the author defines the concept of financial consumer, taking credit legislation for instance, and retrospects the condition of main consumer protection legislation in US history prior to " Dodd-Frank Act". After briefly introducing the legislation background and main content of setting up CFPB by the act, the author analyzes the reason of setting up CFPB, and comes to a conclusion that setting up CFPB is the inevitable measure of coping with the financial crisis and implementing consumer protection idea.Part Ⅱ is about the overview of the legislation of CFPB. In this part, the author interprets the rules of CFPB, including the comprehensive rules, such as purpose, objections and functions; the operation mechanism, such as personnel, institutions and financial arrangement; powers, such as general powers and specific bureau authorities. General powers includes rule-making power and supervisory power, while the specific authorities comprises prohibiting unfair, deceptive and abusive operations and routines. With the interpretation of the rules, we can have a comprehensive understanding of CFPB, which is basic to analysis and evaluation afterwards.Part Ⅲ is about the evaluation of CFPB. Based on the act, firstly, the author analyzes the legislation path of CFPB with the regulation aim, which is,"Two Peaks", and the values of consumer rights. Secondly, the author analyzes and evaluates the rules of CFPB with the three principles in financial legislation, which are bias protection principle, comprehensive protection principle and moderate protection principle. Thirdly, the author argues the reason, behavior and pros and cons of adopting the unitary consumer protection organization type through examining the pattern of financial consumer protection organization. Finally, the author presents her own views on the improvements and shortage of CFPB. In this part, the author introduces the condition of China’s financial consumer protection at each level, by comparing it with US circumstances, the author raises some opinions and suggestions, hoping to enhance the development and improvement of China’s financial consumer protection.