What authority does the Consumer Financial Protection Bureau (CFPB) have?

The Consumer Financial Protection Bureau (CFPB) has the authority to regulate unfair, deceptive, or abusive practices by financial institutions, making this the correct answer. Established after the 2008 financial crisis, the CFPB was created to help ensure that consumers are treated fairly in the financial marketplace. Its key mission is to protect consumers by enforcing federal consumer financial laws and overseeing financial institutions to ensure transparency and fairness.

This involves scrutinizing practices that may take advantage of consumers or harm their financial interests, empowering the CFPB to take action against institutions that engage in such behaviors. Therefore, the CFPB's authority is focused primarily on issues related to consumer finances, lending, mortgages, and various types of financial services, rather than areas such as employment law compliance, consumer product safety, or direct dispute resolution between consumers and service providers.