We do not need a financial consumer protection office – we have courts

President Trump is about everything, but he closes the financial consumer protection office. He even dropped several cases presented by CFPB during the era of former President Joe Biden. The agency aims to protect consumers from fraudulent practices in the financial industry.

Many ask: If CFPB is running out of work, then who will be there to help consumers? The answer is a million lawyers. CFPB has been present for less than 15 years. Consumers were not unable before that. We do not need more government police agencies on the market – we have a prosecutor.

I realize that the prosecutor’s lawyer gets bad rap music in many circles. But the truth is that we need someone to the police in the market. Private lawyers is a much better option than another government agency.

Take a look at one of the main cases in which Trump has decreased: Action against capital to engage in billions of dollars in difficult practices with high -yielding savings accounts.

CFPB just a few days before Trump took office. But the special tape filed a lawsuit against the capital, one for the same, almost two years ago. Seven various collective actions are combined against it in a federal court in Virginia. CFPB was just a lawsuit. The first capital is not outside the hook without it.

In fact, consumers are in best hands now. Data shows that when private lawyers and government follow the same violations, the private tape gets more. This is related to simple incentives: Emergency prosecutors do not get their salaries unless they win. Government bureaucrats receive their salaries regardless of what they do.

Private lawyers are not arrested by the policy and interests of the way the government operates. Yes, most prosecutors are the Democrats, but the profitable motivation keeps them pure. They will sue anyone responsible. They do not look in the other direction due to the contributions of the campaign or the roaming door between the industry and the government. These are the same accurate causes in which the private sector tends to do better work in most things more than the public sector.

Away from a defect, relying on the private tape to the police is one of the secrets that we have succeeded in America. In Europe and other advanced economies, you must obtain permission from the government before doing things. In America, we often allow you to do what you want to do, then we sue you later if you are messing around. We ask for forgiveness, not permission. Our approach has led to a more intelligent and innovative economy, and ultimately.

It is true that private lawyers sometimes go away. Nothing is perfect and there are ways to tighten our system. It is also true that private lawyers cannot do everything. If the treatment required is not financially, or that the financial therapy is small and it cannot be assembled in anything like a group procedure, it will be difficult to find a special lawyer for your representation. We may need the government to take part in some of these cases.

But the good news is that we already have a lot of government – 50 general attorneys, ready, ready, and able to pursue these bad guys. We do not need CFPB in addition.

Brian Fitzpatrick is the president of Milton R. Anderwood at a free institution and a professor of law at the Faculty of Law at Vanderbelt. He is the author of “The Conservative Case of Collective Procedures” (Chicago University Press, 2019). He was a law clerk of the late Supreme Court judge Antonin Scallia and a special consultant for Senator John Cornas.