Which act created the Consumer Financial Protection Bureau (CFPB)?

Which act created the Consumer Financial Protection Bureau (CFPB)?

• A. Dodd-Frank Act
• B. Glass-Steagall Act
• C. Sarbanes-Oxley Act
• D. Truth in Lending Act

Answer: (A)

The main fact tested is which law established the CFPB. The Consumer Financial Protection Bureau was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted in 2010, as part of comprehensive financial reform. This act centralized and strengthened federal consumer protections for financial products and services, giving the CFPB authority to supervise and enforce consumer protection laws across a wide range of financial sectors. The other acts address different issues. The Glass-Steagall Act historically separated commercial and investment banking activities. The Sarbanes-Oxley Act focuses on corporate governance and financial reporting for public companies. The Truth in Lending Act governs disclosure of loan terms but did not establish a dedicated consumer protection agency.

The main fact tested is which law established the CFPB. The Consumer Financial Protection Bureau was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted in 2010, as part of comprehensive financial reform. This act centralized and strengthened federal consumer protections for financial products and services, giving the CFPB authority to supervise and enforce consumer protection laws across a wide range of financial sectors.

The other acts address different issues. The Glass-Steagall Act historically separated commercial and investment banking activities. The Sarbanes-Oxley Act focuses on corporate governance and financial reporting for public companies. The Truth in Lending Act governs disclosure of loan terms but did not establish a dedicated consumer protection agency.