Consumer Financial Protection Bureau [CFPB] Law and Legal Definition

Consumer Financial Protection Bureau (CFPB) is a federal agency established by the Congress to protect consumers by carrying out Federal consumer financial laws. CFPB’s primary responsibility is to enforce the federal laws and regulate consumer protection in the U.S. The key mission of the CFPB is to make markets for consumer financial products and services work for Americans, whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products. The legal power of CFPB extends to banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors and other financial companies. The most pressing concerns of CFPB include mortgages, credit cards and student loans.

CFPB is funded by the U.S. Federal Reserve. Further, CFPB has interim affiliation with the U.S. Treasury Department. The functions of CFPB include:

1. to conduct rule-making, supervision, and enforcement for Federal consumer financial protection laws;

2. to restrict unfair, deceptive, or abusive acts or practices;

3. to create a center to take consumer complaints;

4. to promote financial education;

5. to research on consumer behavior;

6. to monitor financial markets for new risks to consumers; and

7. to enforce laws that outlaw discrimination and other unfair treatment in consumer finance