Consumer watchdog setting up registry of predatory financial businesses

CHARLOTTE — There are a lot of laws in place to protect us against banks, but now the Consumer Financial Protection Bureau is taking action against other financial firms that could have predatory business practices.

Some of the businesses include payday lenders and debt consolidators.

“If they are treating people badly, if they’re charging unfair fees, if they’re misusing their data, if they’re engaging i unfair and deceptive practices, they absolutely should be held accountable,” said Teresa Murray, director of the Consumer Watchdog office with Public Interest Research Groups.

The CFPB says for too long, financial firms haven’t taken the penalties for illegal activities seriously; they treat penalties as the cost of doing business. They say this move will stop those companies from being funded by fraud.

Violators will soon have to register with the bureau and submit a statement of compliance any time they face a court order.

The registry will also be made public, which means you can be better informed about where you do your business.

Experts say before you hand any information over to one of these financial firms, do your homework.

“You certainly should check with the Better Business Bureau in your area, and you can do a nationwide search as well, and then I would also check with your state attorney general’s office because all states have some sort of consumer protection office,” Murray said.

The CFPB hasn’t given a timeline for when this new plan will be rolled out.

In the meantime, you can still file complaints with the bureau if you run into trouble.

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