Which regulatory body is responsible for overseeing consumer financial protection?

The Consumer Financial Protection Bureau (CFPB) is the primary regulatory body responsible for overseeing consumer financial protection. Established in response to the 2008 financial crisis, the CFPB was created with the mandate to ensure that consumers are treated fairly when dealing with financial institutions. Its role includes enforcing federal consumer financial laws, supervising financial entities, and providing consumer education to enhance understanding of financial products and services.

The CFPB's specific focus on consumer protection sets it apart from other agencies. For example, the Financial Stability Oversight Council primarily focuses on monitoring systemic financial risks, while the Office of the Comptroller of the Currency oversees national banks and federal savings associations but is more focused on ensuring the safety and soundness of these institutions. The Federal Reserve System plays a critical role in monetary policy and financial stability, but its primary functions do not center on consumer financial protection in the same manner as the CFPB.

Therefore, the CFPB is uniquely positioned as the key enforcer of regulations designed to safeguard consumers in their financial transactions.