Which statement best describes the Consumer Financial Protection Bureau?

Which statement best describes the Consumer Financial Protection Bureau?

• A. Is a lobbyist group for financial institutions
• B. Serves mainly real estate professionals
• C. Supervises financial institutions and enforces consumer financial laws
• D. Was shut down by the Dodd-Frank Act

Answer: (C)

The main idea is that the Consumer Financial Protection Bureau protects consumers in financial markets by supervising financial institutions and enforcing consumer financial laws. Created by the Dodd-Frank Act in 2010, it oversees banks, credit unions, and many nonbank lenders that offer products like mortgages, credit cards, and other consumer credit. It writes and enforces rules to prevent unfair, deceptive, or abusive practices, conducts examinations, and can take enforcement actions to stop violations and provide restitution to consumers. This focus on consumer protection and oversight of financial products is why this description is the best fit. It isn’t a lobbyist for financial institutions, it isn’t aimed specifically at real estate professionals, and it wasn’t shut down by the Dodd-Frank Act—the act established and empowered the CFPB.

The main idea is that the Consumer Financial Protection Bureau protects consumers in financial markets by supervising financial institutions and enforcing consumer financial laws. Created by the Dodd-Frank Act in 2010, it oversees banks, credit unions, and many nonbank lenders that offer products like mortgages, credit cards, and other consumer credit. It writes and enforces rules to prevent unfair, deceptive, or abusive practices, conducts examinations, and can take enforcement actions to stop violations and provide restitution to consumers. This focus on consumer protection and oversight of financial products is why this description is the best fit. It isn’t a lobbyist for financial institutions, it isn’t aimed specifically at real estate professionals, and it wasn’t shut down by the Dodd-Frank Act—the act established and empowered the CFPB.