Consumer Financial Protection Bureau - CFPB

DEFINITION of 'Consumer Financial Protection Bureau - CFPB'

The Consumer Financial Protection Bureau (CFPB) is a regulatory agency charged with overseeing financial products and services that are offered to consumers. The CFPB is divided into several units: research, community affairs, consumer complaints, the Office of Fair Lending and the Office of Financial Opportunity. These units work together to protect and educate consumers about the various types of financial products and services that are available.

BREAKING DOWN 'Consumer Financial Protection Bureau - CFPB'

The Consumer Financial Protection Bureau was created by the Dodd-Wall Street Reform and Protection Consumer Act of 2010. The CFPB is headed by a chief who is appointed by the President for a five-year term. The bureau is also assisted by a Consumer Advisory Council, which is composed of at least six members who are recommended by regional Federal Reserve presidents.

Specifically, the CFPB helps consumer finance markets work more efficiently by providing rules, enforcing those rules and empowering consumers to take control of their personal financial lives. The CFPB works to educate and inform consumers against abusive financial practices, to supervise banks and other financial institutions, and to study data to better understand consumers and the financial markets they participate in.

The Vision and Goals of the CFPB

The overall aim of the CFPB is to facilitate the development of the consumer finance marketplace. Through this, consumers have access to transparent financial prices and risk and become aware of deceptive and abusive financial practices. The CFPB breaks down this high-level aim into four very specific strategic goals.

The first goal is to prevent financial harm to consumers while promoting good financial practices. The second goal is to empower consumers to live better economic lives. The third goal is to inform the public and policy makers with data-driven analytical insights. The fourth and final goal is to further advance the CFPB's overall impact by maximizing resource productivity.

Ways in Which the CFPB Helps Individual Consumers

In addition to these high-level goals, the CFPB also provides financial guidance for private individuals. Student financial guides are provided for parents and students who will have to pay for college. These guides allow people to compare and contrast the various financial aids available in the market.

For those who are far past college, the CFPB also provides informational resources on retirement planning. The organization can help with social security benefits and provides tips specific to the retirement situation of the individual.

Finally, the CFPB can help private individuals with home ownership. On the CFPB website, it provides consumers with interest rate help, monthly payment worksheets and a loan comparison tool. For those consumers who need mortgage help, the CFPB also provides counseling on financial hardship.

RELATED TERMS
  1. Consumer Financial Protection Act

    An amendment to the National Bank Act designed to identify and ...
  2. Dodd-Frank Wall Street Reform and ...

    A compendium of federal regulations, primarily affecting financial ...
  3. UDAAP

    Misleading or harmful behaviors by those who offer financial ...
  4. Consumer Advisory Council - CAC

    A legislative body established by Congress in 1976. The Consumer ...
  5. Consumer Goods

    Products that are purchased for consumption by the average consumer. ...
  6. Services Sector ETF

    Exchange-traded funds (ETFs) that invest in either the consumer ...
Related Articles
  1. Personal Finance

    How the Consumer Financial Protection Bureau Works

    By cracking down on unfair or deceptive financial service practices, CFPB aims to give consumers more control over their economic lives.
  2. Personal Finance

    Online Lenders Fight Scrutiny with More Info for Borrowers

    If you’ve ever used a small-business online lender, there may have been some uncertainty with regards to pricing. Well, that’s all about to change.
  3. Personal Finance

    Soon, You Can Sue Your Bank Again

    Americans are going to regain the right to sue a bank or credit card company – but not in all cases. We explain what changes and what doesn't.
  4. Investing

    Financial Regulations: Glass-Steagall to Dodd-Frank

    Here are some of the most important financial regulations that have been established.
  5. Personal Finance

    Before You Take That Cash Advance

    Understand who benefits most from cash advances – and when it might make sense to get one.
  6. Personal Finance

    Why Deferred-Interest Promotions Are a Trap

    Deferred-interest credit cards can offer consumers a way to pay for a pricey item over time with no interest. But too often, they are just debt time bombs.
  7. Personal Finance

    Asset Recovery Companies: Don’t Be Scammed

    Victims of money scams have even more to worry about than their lost assets: the real risk of getting scammed again, by a so-called asset recovery firm.
  8. Managing Wealth

    Why Are Financial Literacy and Education so Important?

    Financial literacy is the confluence of financial, credit and debt knowledge that is necessary to make the financial decisions that are integral to our everyday lives.
  9. Investing

    The Dodd-Frank Wall Street Reform Act

    The Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly called Dodd-Frank, was passed in 2010. The goal of the act is to prevent another great recession like that of 2008, which ...
  10. Personal Finance

    Can You Get A Mortgage On A Mobile Home?

    You can get a loan for a mobile home, but it may not be a mortgage. These are the choices for funding manufactured housing.
RELATED FAQS
  1. Does consumer protection cover my debts?

    Discover what type of consumer debts are protected through a variety of federal regulations, and learn how protections change ... Read Answer >>
  2. What are some of the major regulatory agencies responsible for overseeing financial ...

    Discover the specific responsibilities of some of the major regulatory agencies that oversee financial institutions in the ... Read Answer >>
  3. What is the Dodd-Frank Act? How does it affect me?

    The Dodd-Frank Wall Street Reform and Consumer Protection Act is a massive piece of financial reform legislation passed by ... Read Answer >>
  4. Has the Dodd-Frank regulatory reform bill protected consumers?

    Find out why the Dodd-Frank Act is likely to harm consumers and small banks, despite being created in the name of consumer ... Read Answer >>
  5. What are the major laws (acts) regulating financial institutions that were created ...

    Read about the major federal responses to the financial crisis of 2008, such as the Dodd-Frank Wall Street Reform Act and ... Read Answer >>
  6. Which economic factors most affect the demand for consumer goods?

    Understand how key economic factors such as inflation, unemployment, interest rates and consumer confidence affect the level ... Read Answer >>
Hot Definitions
  1. Put Option

    An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security ...
  2. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  3. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  4. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  5. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  6. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
Trading Center