Which body was created by the Dodd-Frank Act to protect consumers?

The Consumer Financial Protection Bureau (CFPB) was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was enacted in response to the 2008 financial crisis. The primary goal of the CFPB is to protect consumers in the financial sector by ensuring that they receive clear information about financial products and services, preventing abusive lending practices, and fostering fair treatment across all segments of the market.

The CFPB focuses on a wide array of consumer financial products, including mortgages, credit cards, and student loans, helping to educate consumers about their rights and providing them with tools to make informed decisions. Its creation marked an important shift toward greater accountability and transparency within the financial industry, aiming to enhance consumer trust and reduce the risk of consumer exploitation.

In contrast, other entities such as the Financial Stability Council, Securities and Exchange Commission, and Federal Reserve Board have different mandates. The Financial Stability Council primarily focuses on monitoring systemic risk in the financial sector, the Securities and Exchange Commission oversees securities markets and protects investors, and the Federal Reserve Board manages monetary policy and regulates banking institutions. These functions, while significant, do not specifically target consumer protection in the same manner as the CFPB.