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CFPB spends big on advertising

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For CFPB fan-boys/girls, via Politico --

"The CFPB took heat from conservatives last year when it signed an advertising contract with GMMB Inc., the go-to media strategy firm for Hillary Clinton's campaign. Now the consumer bureau is increasing its spending under that blanket purchase deal by nearly $14.8 million, making GMMB the agency's biggest contractor for fiscal 2017.

"CFPB Director Richard Cordray, whose time at the agency is running short, OK'd the spending in late June amid a pitched ideological and political battle over his future and the agency's.

"Bureau spokesman Sam Gilford called it money well spent. CFPB's online marketing efforts help consumers easily find free and unbiased information on bank accounts, mortgages and credit cards.

"'For every dollar put towards financial education, $25 is spent on financial marketing, which can make it difficult for consumers to find objective information,' he said. 'Our goal is to reach consumers when they are most likely to need our help.'

"And the consumer bureau is indeed a big spender when it comes to advertising. As a share of the agency's budget, CFPB marketing expenses were second only to the Peace Corps in 2015, a GAO report found. The GAO is expected to update that report with more detail this fall. Stay tuned."

http://www.politico.com/tipsheets/morning-money
 

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Does the 5/24 rule apply? What's the sign up bonus?

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I don't see a problem with this. Part of the CFPB's mission is to provide financial education and advertising is one method of reaching out to people. Same goes for military recruiting, CDC public health campaigns, etc.

To put it in context of other federal government advertising, check out this Congressional Research Service report: https://fas.org/sgp/crs/misc/R41681.pdf

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I only know about the CFPB because of FW and the like. I've used them a handful of times to get $X,000 back from scumbag banking companies.

The average person doesn't even know they exist. How are they supposed to learn about their existence? What's an "appropriate" amount of spending to get their name/image/message out?

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$14 million is not spending dig relative to the federal government.

We probably spend more on removing rust from a single aircraft carrier annually

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Considering how much they've collected or refunded in fines and penalties, it sounds like a wise investment.

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I don't have a problem with that. They only got noticed before due to Elizabeth Warren. They'll end up getting a bank to pay for it ultimately.

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I have no idea if that's a lot of money or not to spend on advertizing. How does it fit into the CFPB budget?

That said, I don't know how effective their advertizing until now has been. Aside from following financial news and various boards, I feel that I'd know very little about what they do aside from getting money from banks and investment firms after they screw their customers. I bet most people would even think Elizabeth Warren was in charge of it LOL.

So, although its mission is certainly lending itself to some advertizing costs to raise awareness on issues and education of consumers on financial products, so far I wouldn't confidently call their advertizing efforts as money well spent.

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The CFPB is a double edged sword, they are really running amok in many instances because of the way they are structured and ultimately those costs get passed along down the road to the very people they are attempting to help. Many of the complaints from people are things that they should know about and while I'm not against a government watch dog, the government shouldn't be in the business of protecting people from their own stupidity.

I have used them, but only because I could gain added leverage and my outcomes would have remained the same whether they existed or not. Ultimately the overnight letters, etc. that I and many receive are going to put a damper on deals.

They are advertising because they are facing scrutiny, simple as that.

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