With the recent appointment of Richard Cordray to the position of director of the Consumer Financial Protection Bureau (CFPB), the agency now has the full authority to use the powers bestowed upon it by Congress. It was not until a director was appointed that the agency, which had been operating since July 2010, could utilize the full depth of its authority.

For Baltimore residents concerned with debt relief, the primary function of this new agency is to serve as a national agency for consumer protection and to aid in the elimination of creditor harassment. The type of companies the agency will be monitoring include banks, credit lenders, securities firms, debt collectors, mortgage servicing companies and other financial companies.

The agency's stated goal is to promote fairness and transparency among consumers and financial services companies. It has vast authority to monitor and regulate the companies that it overseas. One such power the CFPB has is the authority to file lawsuits against banks and non-banks alike under the regulations that dictate "unfair, deceptive and abusive" lending and debt collection practices.

The goal of the agency is to prevent or penalize illicit behavior and protect the overall rights of American consumers. However, the relative power of the financial companies that perform these acts can sometimes overwhelm even governmental agencies.

If the agency fails to do its job or provide appropriate or significant relief, then consumers should still consider every option available to them in an effort to resolve the situation. An attorney is another valuable resource and can help when a consumer needs debt relief, and an experienced bankruptcy attorney can be just what is needed to get through a difficult financial time.

Sources: Bloomberg Businessweek, "Cordray's Ascent Expands Consumer Bureau Reach to Non-Bank Firms," Carter Dougherty, Jan. 6, 2012

Los Angeles Times, "Obama tells consumer bureau to ensure Americans get 'fair shake'," Jim Puzzanghera, Jan. 7, 2012