usc 12 § 5491
Establishment of the Bureau of Consumer Financial Protection (BANKS AND BANKING (12 U.S.C.))
Operative Text
There is established in the Federal Reserve System, an independent bureau to be known as the “Bureau of Consumer Financial Protection”, which shall regulate the offering and provision of consumer financial products or services under the Federal consumer financial laws. The Bureau shall be considered an Executive agency, as defined in . Except as otherwise provided expressly by law, all Federal laws dealing with public or Federal contracts, property, works, officers, employees, budgets, or funds, including the provisions of chapters 5 and 7 of title 5, shall apply to the exercise of the powers of the Bureau. There is established the position of the Director, who shall serve as the head of the Bureau. Subject to paragraph (3), the Director shall be appointed by the President, by and with the advice and consent of the Senate. The President shall nominate the Director from among individuals who are citizens of the United States. The Director shall be compensated at the rate prescribed for level II of the Executive Schedule under . There is established the position of Deputy Director, who shall— be appointed by the Director; and serve as acting Director in the absence or unavailability of the Director. The Director shall serve for a term of 5 years. An individual may serve as Director after the expiration of the term for which appointed, until a successor has been appointed and qualified. The President may remove the Director for inefficiency, neglect of duty, or malfeasance in office. No Director or Deputy Director may hold any office, position, or employment in any Federal reserve bank, Federal home loan bank, covered person, or service provider during the period of service of such person as Director or Deputy Director. The principal office of the Bureau shall be in the District of Columbia. The Director may establish regional offices of the Bureau, including in cities in which the Federal reserve banks, or branches of such banks, are located, in order to carry out the responsibilities assigned to the Bureau under the Federal consumer financial laws.
Section 5491 of Title 12 establishes the Bureau of Consumer Financial Protection (CFPB) as an independent bureau within the Federal Reserve System, tasked with overseeing consumer financial products and services under federal consumer financial laws. The Bureau is treated as an Executive agency and is subject to general federal laws governing public contracts, employees, and funds. Leadership is structured around a presidentially appointed, Senate-confirmed Director serving a five-year term, with a Deputy Director appointed by the Director to step in when needed. The Director may be removed by the President only for specific causes such as inefficiency, neglect of duty, or malfeasance.
Plain English — not legal advice.
For property owners and managers who offer financial products or services — such as certain mortgage arrangements or rent-to-own agreements — 12 U.S.C. § 5491 is the foundational authority establishing the CFPB as the federal body that oversees compliance with consumer financial laws. Operators in covered financial services generally stay informed about CFPB rulemaking and guidance, since the Bureau's regulatory authority flows directly from this provision. Understanding the Bureau's structure, including its independent status and leadership framework, helps operators anticipate how federal consumer financial oversight is administered.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 12 U.S.C. § 5491, the CFPB was created specifically to regulate consumer financial products and services, making it a key federal resource for individuals who believe their rights under consumer financial laws have been violated. Tenants who encounter issues with financial products connected to housing — such as certain loan or credit arrangements — may find the CFPB's complaint process a relevant avenue to explore. Tenant-rights organizations and legal aid offices can help individuals understand how the Bureau's authority under this provision may relate to their circumstances.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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