The Consumer Financial Protection Bureau (CFPB) was created to ensure that financial products and services that Americans depend on daily–including credit cards, mortgages, and loans–work better for the people who use them. According to the Consumer Financial Protection Bureau, the agency has provided $12 billion to 29 million Americans hurt by predatory student loans, misleading credit card services, and other financial products. The CFPB will enforce more than a dozen laws protecting consumers from financial harm, including the Truth in Lending Act.
Essentially, the CFPB is a watchdog that is charged with protecting consumers from unsavory lenders and other financial institutions. The CFPB, established in 2010, is the consolidation of several consumer protection agencies, with high levels of power and independence. Numerous state governments run consumer protection agencies, some of which are modeled on the CFPB. Prior to the establishment of the CFPB, responsibility for consumer protection fell under seven government agencies.
Established under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the CFPB is charged with overseeing the federal financial laws that protect consumers in particular — people who store money at banks and credit unions, pay for goods and services using credit cards, and rely on loans to purchase homes or pay for college, among other services. Among other functions, the CFPB is charged with ensuring that the Federal financial laws that apply to banks, credit unions, credit cards, and loans for homes and colleges are followed. The CFPB ensures the consistency of enforcement of the federal consumer financial laws to allow consumers access to markets for financial products, and that those markets are fair, transparent, and competitive. CFPB is intended to help ensure consumers are treated fairly by banks, credit card issuers, mortgage companies, and other financial services firms.
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