Which Act was responsible for the creation of the Consumer Financial Protection Bureau (CFPB)?

The Dodd-Frank Act is responsible for the creation of the Consumer Financial Protection Bureau (CFPB). Enacted in response to the 2008 financial crisis, this comprehensive piece of legislation aimed to promote financial stability and protect consumers from abusive lending practices. The CFPB was established as part of the Dodd-Frank Act to centralize oversight of financial products and services, ensuring that consumers had access to clear information and resources to make informed decisions.

The Dodd-Frank Act aimed to address gaps in regulatory oversight that contributed to the financial downturn and included provisions for consumer protection, banking regulations, and derivatives to create a more resilient financial system. By establishing the CFPB, the Act enabled the federal government to focus on consumer rights, enforce financial laws, and provide education regarding financial matters, which is crucial for fostering a fair and transparent financial marketplace.