Consumer Financial Protection Bureau (CFPB) | Practical Law (2024)

FAQs

Consumer Financial Protection Bureau (CFPB) | Practical Law? ›

In particular, the CFPB has: Supervisory and enforcement authority over insured depository institutions and insured credit unions with more than $10 billion in assets. Rulemaking, supervisory, and enforcement authority over covered persons subject to specified exceptions.

The CFPB implements and enforces federal consumer financial laws to ensure that all consumers have access to markets for consumer financial products and services that are fair, transparent, and competitive.

The CFPB was created to provide a single point of accountability for enforcing federal consumer financial laws and protecting consumers in the financial marketplace. Before, that responsibility was divided among several agencies. Today, it's our primary focus.

The CFPB supervises a range of companies to assess their compliance with federal consumer financial laws. We have supervisory authority over banks, thrifts, and credit unions with assets over $10 billion, as well as their affiliates.

When a financial institution, individual, or other entity subject to the CFPB's authority breaks the law, the CFPB may take enforcement action against them. In certain cases, the CFPB may partner with other federal, state, or local agencies to investigate the wrongdoing and coordinate the enforcement action.

Consistent with applicable law, we securely share complaints with other state and federal agencies to, among other things, facilitate: supervision activities, enforcement activities, and. monitor the market for consumer financial products and services.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the CFPB has authority to use traditional law enforcement to stop companies from engaging in conduct that pose risk to consumers; this can involve adversarial litigation.

We send consumers' complaints about consumer financial products and services—including complaints referred to the CFPB by prudential regulators and other government agencies—to the CFPB-supervised bank or credit union or to the nonbank identified by the consumer. Review the list of complaint types we send to companies.

For any violation of a law, rule, or final order or condition imposed in writing by the CFPB, a civil money penalty of up to $5,000 for each day during which such violation or failure to pay continues.

The CFPB's creation was authorized by the Dodd–Frank Wall Street Reform and Consumer Protection Act, whose passage in 2010 was a legislative response to the financial crisis of 2007–08 and the subsequent Great Recession and is an independent bureau within the Federal Reserve.

What is the 777 rule with debt collectors? ›

The “777 Rule” states that debt collectors may attempt to contact a consumer about a single debt up to seven times in seven days. Phone numbers do not matter; it's the number of debts that matters.

When we take action to enforce the law, we (or a court) may order the violator to remedy the harm it caused consumers by compensating victims for this harm. We may also give back money through our civil penalty fund or our redress program.

In July 2010, Congress passed and President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act. The law – often referred to as the Dodd-Frank Act – created the Consumer Financial Protection Bureau (the CFPB).

The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces Federal consumer financial law and ensures that markets for consumer financial products are fair, transparent, and competitive.

Sometimes the CFPB will send a warning letter to advise recipients that certain actions may violate federal consumer financial law. These are not accusations of wrongdoing.

Divisions at the CFPB report directly to the Office of the Director, except for the Operations Division, which reports to the Deputy Director. Operations is the operational support arm of the CFPB.

CFPB supervises nonbanks in markets for mortgage lending, payday lending, and private student lending, as well as larger participants in markets for consumer reporting, consumer debt collection, student loan servicing, international money transfers, and automobile financing.

However, despite exclusions in the law for the “business of insurance” and for “any ‎person regulated by a state insurance regulator”, the CFPB has authority over insurance companies if: (1) ‎they provide a “consumer financial product or service” such as financial advisory services, loans to ‎policyholders and ...

When we take an enforcement action against an entity or person we believe has violated the law, we will post court documents and other related materials here. The Bureau may enforce the law by filing an action in federal district court or by initiating an administrative adjudication proceeding.

The Consumer Financial Protection Bureau (CFPB) helps consumers by providing educational materials and accepting complaints. It supervises banks, lenders, and large non-bank entities, such as credit reporting agencies and debt collection companies.