Case Study: United States John Hurley, Director, U.S. Treasury Session 1: Financial Education and Consumer Protection Strategies: Complementary Foundations to Empower Financial Consumers and Promote Effective Financial Inclusion

Consumer Financial Protection Bureau Congress established the CFPB to protect consumers by carrying out federal consumer financial laws. CFPB’s job is to: Write rules, supervise companies, and enforce federal consumer financial protection laws Restrict unfair, deceptive, or abusive acts or practices Take consumer complaints Promote financial education Research consumer behavior Monitor financial markets for new risks to consumers Enforce laws that outlaw discrimination and other unfair treatment in consumer finance

Consumer Financial Protection Bureau CFPB statutory objectives: To ensure that consumers have timely and understandable information to make responsible decisions about financial transactions; To protect consumers from unfair, deceptive, or abusive acts or practices, and from discrimination; To reduce outdated, unnecessary, or unduly burdensome regulations; To promote fair competition by enforcing the Federal consumer financial laws consistently; and To advance markets for consumer financial products and services that operate transparently and efficiently to facilitate access and innovation.

Consumer Financial Protection Bureau Advisory Groups: Consumer Advisory Board Community Bank Advisory Council Credit Union Advisory Council Academic Research Council

Financial Education Financial education is a crucial part of the consumer protection framework. CFPB’s Office of Financial Education works to: Build a comprehensive approach to financial education in the U.S.: Develop knowledge about what works in financial education and provide opportunities for financial educators to learn about effective strategies Promote innovation: Test new ideas and share successful innovations Educate consumers: Provide understandable information that helps customers make informed financial decisions Increase outreach and federal coordination: Build relationships with all stakeholders. The Director of the CFPB serves as the vice chair of the Financial Literacy and Education Commission, which coordinates the work of 21 federal agencies and the White House.

Innovative Resources for Consumers CFPB developed many resources for consumers to gain information: ASK CFPB: A web-based question and answer tool that provides consumers with information on many consumer financial services topics. Consumer Response Unit: Takes complaints on financial services and products in over 180 languages. Specific Web-based tools: These help consumers understand student education loans and mortgages. Longer Publications: On mortgages, credit, and other financial topics The Consumer is the first line of defense in a quickly evolving financial services marketplace and financial education is a critical component of ensuring that the marketplace works for all participants.