What legislative act established the Consumer Financial Protection Bureau?

The Consumer Financial Protection Bureau (CFPB) was established under the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was enacted in July 2010 in response to the financial crisis that occurred in 2008. The primary purpose of the CFPB is to regulate financial institutions and protect consumers in the financial marketplace, aiming to create a fairer and more transparent financial system.

The Dodd-Frank Act includes provisions designed to enhance consumer protections, particularly in areas such as mortgage lending, credit reporting, and financial product disclosures. It grants the CFPB authority to regulate financial products and services, enforce consumer financial laws, and educate consumers on financial matters. This legislation reflects a significant shift in the regulatory landscape, focusing on the need to safeguard consumers against fraudulent and predatory practices by financial institutions.

In contrast, the other options listed do not pertain to the establishment of the CFPB. The Consumer Rights Act focuses on consumer protection in various sectors but does not specifically establish the CFPB. The Truth in Lending Act and the Fair Credit Reporting Act are important consumer protection laws that address transparency in lending and credit reporting, respectively, but they were enacted prior to the Dodd-Frank Act and do not establish the CFPB. Thus, the