Consumer Financial Protection Act

AAA

DEFINITION of 'Consumer Financial Protection Act'

An amendment to the National Bank Act designed to identify and explain the standards that apply to national banks. The Consumer Financial Protection Act aims to increase oversight and clarify the laws governing financial transactions in order to protect consumers in these transactions. The act resulted in the creation of the Consumer Financial Protection Bureau (CFPB) to centralize the regulation of various financial products and services.

INVESTOPEDIA EXPLAINS 'Consumer Financial Protection Act'

In the wake of the housing market collapse of the late 2000s, which many blamed, at least partly, on "predatory" lending practices, numerous proposals had been made seeking to grant the federal government more oversight of various financial processes. Forming a Consumer Financial Protection Bureau, (also refered to as the Consumer Financial Protection Agency) was one of those proposals. The agency is designed to consolidate or resolve descrepencies between federal and state financial laws. CFPB was launched in 2011; its main goal is to protect consumers from fraudulent and/or overly aggressive behavior from banks and other financial institutions.

RELATED TERMS
  1. The Great Recession

    The steep decline in economic activity during the late 2000s, ...
  2. Consumer Financial Protection Bureau ...

    A regulatory agency charged with overseeing financial products ...
  3. Investor Protection Act

    A component of the Wall Street Reform and Consumer Protection ...
  4. Truth in Savings Act

    A federal law passed by Congress on December 19, 1991 as part ...
  5. Emergency Economic Stabilization ...

    One of the bailout measures taken by Congress in 2008 to help ...
  6. Financial Institutions Reform, ...

    A law enacted to ensure that real estate appraisals are performed ...
Related Articles
  1. Consumer Protection Laws You Need To ...
    Personal Finance

    Consumer Protection Laws You Need To ...

  2. How does FINRA differ from the SEC?
    Investing

    How does FINRA differ from the SEC?

  3. Investigating The Securities Police
    Professionals

    Investigating The Securities Police

  4. Policing The Securities Market: An Overview ...
    Investing Basics

    Policing The Securities Market: An Overview ...

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center