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Consumer Financial Protection Bureau
Consumer Financial Protection Bureau summary:
The Consumer Financial Protection Bureau (CFPB) is a federal government agency that helps protect you from unfair treatment by financial services companies, including debt collectors.
You can file a complaint with the CFPB if you believe you’re the victim of a financial scam or other illegal, abusive treatment by debt collectors, banks, or creditors.
The CFPB website has financial education to help you learn about different types of loans or what to do if you’re contacted by debt collectors.
Consumer Financial Protection Bureau definition and meaning
The Consumer Financial Protection Bureau (CFPB) is a federal government agency that helps make sure people are treated fairly by financial services companies like banks, credit card companies, lenders, and debt collectors.
If you're the victim of a financial scam or you believe you experienced unfair, abusive, deceptive, or illegal behavior by a financial company or debt collector, you can file a complaint with the CFPB. As of January 2025, the CFPB says it has helped consumers get back $19.7 billion that was unfairly charged to them or taken from them by financial companies.
Key concept: A federal agency with the mission of implementing and enforcing financial consumer laws.
More on Consumer Financial Protection Bureau
The CFPB was created in 2010 after the Great Recession of 2007-2008. The CFPB opened its doors in 2011 to implement and enforce Federal consumer financial law. The bureau watches out for consumers who might be vulnerable to unfair business practices, predatory lending, risky financial products, or excessive fees.
The goal of the Consumer Financial Protection Bureau was to create one dedicated federal agency that focused on consumer protections from unfair practices in the financial services industry. Unfair, abusive and deceptive practices in financial services were already against the law, but the CFPB aims to improve enforcement by serving as a watchdog for consumers under one agency.
Key aspects of the Consumer Financial Protection Bureau
Here are a few key aspects of what the CFPB does and how its work affects U.S. consumers.
Stop unfair and abusive business practices
The CFPB tries to prevent, stop, and penalize bad actions by financial services companies. If a bank, credit card company, lender or other financial firm is charging unfair fees, using predatory lending practices to get their customers stuck in a debt trap, or otherwise violating the rules of America’s financial regulations, the CFPB works to make them stop. The CFPB uses enforcement actions and fines to penalize companies that break the rules and take advantage of their customers.
Enforce anti-discrimination laws
Financial services, such as banking and consumer credit, are open to everyone, no matter their race, sex, religion, national origin, or other legally protected aspect of personal identity. The CFPB investigates and enforces the law whenever a financial services firm has discriminatory lending practices.
Consumer complaints
If you believe that you have been a victim of unfair, deceptive, or abusive business practices by a financial company or debt collector, you can file a complaint with the CFPB. Most companies respond to these complaints within 15 days.
Financial products research
The CFPB researches different areas of the financial system. For example, recent CFPB research examines auto loans and car repossession trends, flood risks for U.S. mortgages, buy now, pay later loans, and trends in cash-out mortgage refinances.
Consumer education
The CFPB website provides information on different topics in personal finance and financial education. If you need reliable government information on any questions related to loans, credit cards, debt collections, mortgages, and more, try the CFPB website at consumerfinance.gov.
The Consumer Financial Protection Bureau can be an informative, helpful agency and it has a special mission to be a watchdog for consumer rights. If you’ve been cheated or deceived by a financial company, the CFPB might be able to help get your money back.
Many people have unpaid debts that the CFPB can’t help with. If you’re struggling with credit card debt or other debts, you might want to consider debt relief.
CFPB FAQs
What can you do if a debt collector is harassing you?
If you think a debt collector is harassing you or violating your rights under the FDCPA, you can file a complaint with the Consumer Financial Protection Bureau (CFPB). You can also report the debt collector to your state attorney general. If the harassment continues, you might be able to sue the debt collector.
Are HELOCs safe? (I heard they have a bad rap)
Yes, while there is risk in any loan or investment, HELOCs are fairly safe provided you can repay what you owe. Finance companies, including Achieve, are regulated by both federal and state government agencies, including the CFPB (Consumer Financial Protection Bureau). HELOCs are covered under regulations such as the Truth in Lending Act (TILA), the Real Estate Settlement Procedures Act (RESPA), and various state laws as well.
Mortgage loans, including HELOCs, did get some bad press in the mid-2000s mainly because unscrupulous appraisers, predatory lenders, and unethical banks were overvaluing homes and pushing mortgage loans, including HELOCs, to an unsuspecting public who took on more debt than they could really afford. When the housing bubble burst in 2007-2008, many people took a hit, and so did the reputation of a number of mortgage products, including HELOCs.
Today there are more safeguards around mortgage-secured products through changes in the regulatory oversight of mortgage loans. (The CFPB and SAFE Act mortgage licensing requirements didn't even exist prior to 2008!) So lenders are now much more likely to only give out loans if they have confidence that the applicant can pay it back. Another issue that caused many borrowers so much pain way back then—variable interest rates—is something you don't have to worry about with a HELOC through Achieve…which always offers a safer, fixed, low rate.
What are the things debt collectors can’t do?
Even if the debt is legitimate, there are still rules the collector has to follow.
They can’t come to your workplace to collect payment. They can contact you at work as long as they don’t reveal to your coworkers that there is a debt. And they have to stop if you ask them to.
They can’t harass you with repeated calls, threats of violence, publishing information about you, or using abusive or obscene language.
Debt collectors can't arrest you for debt or threaten to have you arrested.
They can’t say they’re suing you if they don’t plan to file a lawsuit.
Debt collectors can’t pursue you for debt that they can’t prove you owe.
They can’t post public messages on social media about your debt.
If you believe a debt collector violated the Fair Debt Collection Practices Act, you can file a complaint online with the Consumer Financial Protection Bureau or sue the collector for damages.
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