Consumer Financial Protection Bureau

From Simple English Wikipedia, the free encyclopedia
President Barack Obama nominated Richard Cordray as the bureau's first director in 2011

The Consumer Financial Protection Bureau (CFPB) is an agency of the United States government. It was established by President Barack Obama in 2011.

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.[1] 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.

The first director of the CFPB was Ohio politician Richard Cordray who served from 2012 through 2017. The current Director is Kathleen Kraninger since December 11, 2018.[2]

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]

  Special Advisor
  Acting Director
No. Portrait Name State of residence Took office Left office Tenure Presidents
Elizabeth Warren 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 Richard Cordray Ohio January 4, 2012 November 24, 2017[3] 5 years, 16 days
308 days
(5 years, 324 days total)
Donald Trump
Mick Mulvaney Mick Mulvaney South Carolina November 25, 2017 December 10, 2018 1 year, 15 days
2 Mick Mulvaney Kathy Kraninger Ohio December 11, 2018 January 20, 2021[4] 2 years, 40 days

David Uejio District of Columbia January 20, 2021 October 12, 2021 265 days Joe Biden
3 Rohit Chopra Rohit Chopra New Jersey October 12, 2021 2 years, 164 days

References[change | change source]

  1. Eaglesham, Jean (February 9, 2011). "Warning Shot On Financial Protection". The Wall Street Journal. Retrieved February 10, 2011.
  2. "CFPB Issues An Alert Highlighting Extra Protections For Service Members And Veterans". Retrieved 2020-12-27.
  3. Wattles, Jackie (November 24, 2017). "Richard Cordray resigns as head of Consumer Financial Protection Bureau". CNN Money.
  4. Lane, Sylvan (2021-01-20). "Consumer bureau director resigns after Biden's inauguration". The Hill. Retrieved 2021-01-21.