Bureau of Consumer Financial Protection Law and Legal Definition

The Bureau of Consumer Financial Protection (CFPB) is an independent bureau within the Federal Reserve System that regulates consumer financial products and services in compliance with federal law. It provides consumers with the information they need to make financial decisions that are best for them and their families. The CFPB was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The central mission of the CFPB is to make markets for consumer financial products and services work for Americans; no matter whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products.

The CFPB works to promote fairness and transparency for mortgages, credit cards, and other consumer financial products and services. The CFPB will set and enforce clear, consistent rules that allow banks and other consumer financial services providers to compete on a level playing field and that let consumers see clearly the costs and features of products and services.

The CFPB is headed by a director who is appointed by the President, with the advice and consent of the Senate, for a term of five years. The Bureau is subject to financial audit by the GAO, and must report to the Senate Banking Committee and the House Financial Services Committee bi-annually.

The five units of the CFPB are:

1. Research

2. Community Affairs

3. Complaint Tracking and Collection

4. Office of Fair Lending and Equal Opportunity

5. Office of Financial Literacy