What Functions are performed by the CFPB?
Essentially, the CFPB is a watchdog agency tasked with protecting consumers from unscrupulous lenders and other financial Institutions. Though the Agnecy has some unique responsibilities, it would also assume existing duties once carried out by the Federal Trade Commission and other government agencies.
The aim of CFPB is to make Consumer Financial Markets work for the consumers, responsible providers, and the Economy as a whole. CFPB protects consumers from unfair, deceptive, or abusive practices and take action against companies that break the law. The CFPB arm people with the information, steps, and tools that they need to make smart financial decisions.
The CFPB works towards a market that works, where prices, risks, and terms of the deal are clear upfront so that consumers can understand their options and can shop in a competitive environment. The goal of CFPB is to create an environment where companies play by the same consumer protection rules and compete fairly on providing quality and service. To achieve this vision, the CFPB works towards:
Empowerment: To create tools, answer common questions, and provide tips that help consumers navigate their financial choices and shop for the deal that works best for them.
Enforcement: To take action against predatory companies and practices that violate the law and have already returned billions of dollars to harmed customers.
Education: To encourage financial education and capability from childhood through retirement, publish research, and educate financial companies about their responsibilities.
The Core function for the creation of the CFPB is to provide a single point of accountability for enforcing federal consumer financial laws and protecting consumers in the financial marketplace. Before CFPB was created, the responsibility was divided among several agencies.
The CFPB is divided into a number of different units, including the Office of Fair Lending, Consumer Complaints, Research, Community Affairs and the Office of Financial Opportunity.