Modern consumer financial protection laws are built on reforms enacted after the 2008 global financial crisis. In the United States, this framework is centered around the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
The Birth of the CFPB
Title X of the Dodd-Frank Act created an independent watchdog within the Federal Reserve System: the Consumer Financial Protection Bureau (CFPB). The CFPB consolidated consumer protection powers that were previously split among multiple federal regulators, creating a single authority to oversee the consumer financial marketplace.
The CFPB Enforcement Perimeter
The CFPB has direct supervisory authority over large depository institutions (banks and credit unions with assets over $10 billion) and all non-depository financial entities, including mortgage companies, payday lenders, and private student loan providers. The bureau enforces federal consumer financial laws to ensure markets are fair, transparent, and competitive.
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                      |     CFPB Enforcement Mandate    |
                      +---------------------------------+
                                       |
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         |                             |                             |
+------------------+          +------------------+          +------------------+

| Rulemaking Power |          | Direct Oversight |          | Enforcement Arms |
| Creates standard |          | Conducts field   |          | Issues subpoenas |
| market mandates  |          | bank examinations|          | levies penalties |
+------------------+          +------------------+          +---------------
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