The primary goal of the CFPB, created by U.S. President Barack Obama as part of his administration’s financial regulatory reform, is to oversee the provision of legal information regarding the rights and responsibilities of Americans who use the services of the country’s financial institutions.
The U.S. Consumer Financial Protection Bureau, established by the 44th President of the United States, Barack Obama, became operational on July 21, 2011, in response to the massive economic crisis of 2007 and 2008. The new executive agency was initially managed by the American politician and lawyer Richard Cordray.
The Consumer Financial Protection Bureau was intended to create a more effective system of developing and enforcing consumer protection laws. In addition, the bureau monitors financial service providers such as mortgage lenders, tax lenders, debt collectors, credit report agencies, and private student loan companies that the federal government has not previously observed.
The CFPB is designed to help consumer lending markets operate consistently and fairly by allowing consumers more control over their financial history. The Consumer Financial Protection Bureau has developed responsible lending rules, including the “know before you owe” rule, which requires consumers to have complete and accurate information about a financial product before entering into a contract.
The Consumer Financial Protection Bureau opposes the imposition of insurance when granting loans. When it receives a complaint from consumers, it provides support in recovering money from banks that impose insurance services. The tasks of the CFPB include informing consumers about their rights, controlling the legality of financial institutions, and collecting and analyzing information about financial services, financial markets, and consumer economic behavior. It is designed to help consumers make fully informed financial decisions that reflect their interests.