FTC, CFPB sign agreement to coordinate consumer protection efforts

Richard CordrayThe Federal Trade Commission and the Consumer Financial Protection Bureau announced on Monday that the agencies have signed an agreement to coordinate consumer protection efforts.

The agencies agreed to coordinate efforts to prevent oversight overlap, meet regularly, provide feedback to one another and consult on future rule-making.

"The FTC has always been committed to protecting consumers and legitimate companies from bad actors in the financial marketplace," FTC Chairman Jon Leibowitz said. "Now we have another cop on the beat, and this agreement ensures that businesses will not be double-teamed by the two agencies."

Though the Dodd-Frank Act requires the FTC and the CFPB to work together, the agencies signed a "memorandum of understanding" to supplement the law's requirements. A vote of 4-0 by the FTC approved the memorandum.

CFPB Director Richard Cordray said that the agreement is important to ensuring consistency and consumer protection.

"Entering this agreement with the FTC is important to making sure markets for consumer financial products are getting efficient and effective federal government oversight," Cordray said. "We are both motivated by the same thing: To do right by consumers. We look forward to this partnership."

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