ABOUT THE CFBP

ABOUT THE CFBP

The Consumer Financial Protection Bureau was proposed by now-Sen. Elizabeth Warren, D-Mass., and it was created as part of the laws passed after the 2008 financial crisis and subsequent recession.

It was given a broad mandate to be a watchdog for consumers when they deal with banks and credit card, student loan and mortgage companies, as well as debt collectors and payday lenders.

The CFPB gets its funding from the Federal Reserve and its director is given significant leverage to go after what he or she considers important. The director can be removed only “for cause,” such as neglect of duty, and not over political differences.

Under the leadership of its first director Richard Cordray of Ohio, the CFPB implemented or proposed a myriad of new rules and regulations for the banking industry.

The agency also has taken legal action against banks, mortgage companies, credit-card issuers, payday lenders, debt collectors and others, and it’s extracted billions of dollars in settlements for U.S. consumers.