Consumer Financial Protection Bureau (CFPB)
The US federal agency created by Dodd-Frank to protect consumers in the financial marketplace.
What is CFPB?
The Consumer Financial Protection Bureau (CFPB) is an independent US federal agency created by the Dodd-Frank Act (2010) to protect consumers from abusive, deceptive, or unfair practices in financial products and services. The CFPB has authority over mortgages, credit cards, student loans, payday loans, debt collection, and other consumer financial products. It publishes consumer education resources, accepts consumer complaints, conducts research, and takes enforcement action against financial institutions. The CFPB has returned billions of dollars to consumers harmed by illegal practices. It has been politically controversial: supporters argue it's essential consumer protection; critics argue it overreaches and harms financial innovation and access.
Example
In 2016, the CFPB fined Wells Fargo $185 million after discovering that employees had secretly opened over 2 million unauthorized bank and credit card accounts in customers' names to meet aggressive sales targets. The CFPB investigation and enforcement action triggered a national scandal, significant customer compensation, and major management changes at Wells Fargo.