Consumer Financial Protection Bureau
What do they do?[change | change source]
It is responsible for consumer protection in the financial sector. They work within banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors and other financial companies operating in the United States.
Creation[change | change source]
The CFPB's creation was made 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 eventual Great Recession. The CFPB was established as an independent agency, but this status is being reviewed by the U.S. Court of Appeals.
Leadership[change | change source]
The CFPB is headed by a chief who is appointed by the President for a five-year term. The bureau is also assisted by a Consumer Advisory Council, which is composed of at least six members who are recommended by regional Federal Reserve presidents.
2020 Supreme Court decision[change | change source]
The Supreme Court of the United State (SCOTUS), in a 5-to-4 decision, ruled June 29, 2020, that the structure of the CFPB violates the separation-of-powers clause of the constitution since the bill directed that the CFPB director could be removed by the president only for "cause," defined as "inefficiency, neglect of duty, or malfeasance in office.
List of directors[change | change source]
|No.||Portrait||Name||State of residence||Took office||Left office||Tenure||Presidents|
|–||Elizabeth Warren||Massachusetts||September 17, 2010||August 1, 2011||318 days||Barack Obama|
|–||Raj Date||District of Columbia||August 1, 2011||January 4, 2012||156 days|
|1||Richard Cordray||Ohio||January 4, 2012||November 24, 2017||5 years, 16 days|
(5 years, 324 days total)
|–||Mick Mulvaney||South Carolina||November 25, 2017||December 10, 2018||1 year, 15 days|
|2||Kathy Kraninger||Ohio||December 11, 2018||January 20, 2021||2 years, 40 days|
|–||David Uejio||District of Columbia||January 20, 2021||October 12, 2021||265 days||Joe Biden|
|3||Rohit Chopra||New Jersey||October 12, 2021||353 days|
References[change | change source]
- Eaglesham, Jean (February 9, 2011). "Warning Shot On Financial Protection". The Wall Street Journal. Retrieved February 10, 2011.
- "CFPB Issues An Alert Highlighting Extra Protections For Service Members And Veterans". Retrieved 2020-12-27.
- Wattles, Jackie (November 24, 2017). "Richard Cordray resigns as head of Consumer Financial Protection Bureau". CNN Money.
- Lane, Sylvan (2021-01-20). "Consumer bureau director resigns after Biden's inauguration". The Hill. Retrieved 2021-01-21.