Consumer Financial Protection Bureau facts for kids

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?

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

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. The CFPB was established as an independent agency, but this status is being reviewed by the U.S. Court of Appeals.

Leadership

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.

2020 Supreme Court decision

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

     Special Advisor      Acting Director

No.	Portrait	Name	State of residence	Took office	Left office	Tenure	Presidents
–		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	Ohio	January 4, 2012	November 24, 2017	5 years, 16 days
						308 days (5 years, 324 days total)		Donald Trump
–		Mick Mulvaney	South Carolina	November 25, 2017	December 10, 2018	1 year, 15 days
2		Kathleen Kraninger	Ohio	December 11, 2018	January 20, 2021	2 years, 40 days

See also

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