In the Know: Consumer Financial Protection Bureau
In the Know is a bi-monthly feature on the LEAD Center blog that highlights important resources and information about the employment, policy and economic advancement of people with disabilities. To find even more useful resources, visit the LEAD Center Resource Center.
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Did you know that 41 percent of people with disabilities used methods of non-bank borrowing, such as a pawn shop or payday loans, as compared to only 29 percent of people without disabilities - according to a National Disability Institute report entitled, Financial Capability of Adults with Disabilities: Findings from the FINRA Investor Education Foundation 2012 National Financial Capability Study?
Unfortunately, many nontraditional banking methods come with a high price tag, especially for people with disabilities. At a time when nearly 3 in 4 people with disabilities are already unable to secure $2,000 in the event of an emergency, predatory banking practices and the associated high interest fees put individuals with disabilities even further in the "financial hole."
To make things worse, prior to 2011, there was little in the way of federal oversight protecting Americans from deceptive and predatory banking tools and products.
Since that time, however, things have changed, in large part as a result of the work of the Consumer Financial Protection Bureau (CFPB). Established by Congress in 2011, the CFPB is the federal agency charged with protecting and educating consumers regarding financial products and services through enforcement of federal consumer financial protection laws. CFPB writes rules, supervises companies, and enforces federal consumer protection laws; restricts unfair, deceptive or abusive acts and practices; takes consumer complaints; promotes financial education; researches consumer behavior; monitors financial markets for new risks to consumers; and enforces laws outlawing discrimination and other unfair treatment in consumer finance.
Take a moment to discover all of the resources available on the CFPB website to help consumers with and without disabilities take hold of their financial futures.