Consumer Financial Protection Bureau facts for kids

President Barack Obama nominated Richard Cordray as the bureau's first director in 2011

The official logo of the CFPB

The Consumer Financial Protection Bureau (CFPB) is a special agency of the United States government. It was started by President Barack Obama in 2011. Its main job is to help protect you when you deal with money matters.

What Does the CFPB Do?

The CFPB works to protect people who use financial services. This means they look after things like banks, credit unions, and companies that offer loans. They also help with mortgages, debt collectors, and other money-related businesses. Their goal is to make sure these companies treat you fairly.

How the CFPB Was Created

The CFPB was created after a big financial problem in 2007 and 2008. This problem, called the financial crisis, caused many people to lose jobs and homes. To help prevent this from happening again, the government passed a law in 2010. This law, called the Dodd–Frank Act, created the CFPB. It was set up to be an independent agency, meaning it could do its job without too much political influence.

Who Leads the CFPB?

The CFPB is led by a person called the Director. The President of the United States chooses this person for a five-year term. There is also a group called the Consumer Advisory Council. This group helps the Director by giving advice on how to protect consumers.

The first Director of the CFPB was Richard Cordray from Ohio. He served from 2012 to 2017. The current Director is Kathleen Kraninger, who started in December 2018.

Supreme Court Decision in 2020

In 2020, the highest court in the U.S., the Supreme Court, made an important decision about the CFPB. The court ruled that the way the Director could be removed was not quite right. The original law said the President could only remove the Director for specific reasons, like not doing their job well. The Supreme Court said this rule went against the idea of "separation of powers" in the government. Now, the President has more power to remove the Director.

Images for kids

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  Elizabeth Warren was a Special Advisor who helped set up the CFPB.

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  Richard Cordray was the first official Director of the CFPB.

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  Mick Mulvaney served as an Acting Director.

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  Kathleen Kraninger is a former Director of the CFPB.

See also

In Spanish: Oficina para la Protección Financiera del Consumidor para niños