Which of the following is an important implication of the Dodd-Frank Wall Street Reform and Consumer Protection Act?

Which of the following is an important implication of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
A . Financial institutions must avoid collecting a customer’s sensitive personal information
B . Financial institutions must help ensure a customer’s understanding of products and services
C . Financial institutions must use a prescribed level of encryption for most types of customer records
D . Financial institutions must cease sending e-mails and other forms of advertising to customers who opt out of direct marketing

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Answer: B

Explanation:

The Dodd-Frank Act created the Consumer Financial Protection Bureau (CFPB) as an independent agency within the Federal Reserve System. The CFPB has the authority to regulate consumer financial products and services, such as mortgages, credit cards, student loans, and payday loans. One of the main objectives of the CFPB is to promote transparency, fairness, and consumer choice in the financial marketplace. The CFPB has issued rules and guidance to require financial institutions to provide clear and accurate information to consumers about the costs, risks, and benefits of their products and services. The CFPB also has the power to enforce consumer protection laws and prohibit unfair, deceptive, or abusive acts or practices by financial

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Reference: 1: Dodd-Frank Wall Street Reform and Consumer Protection Act, Title X,

Subtitle A, Section 1011. 2: Consumer Financial Protection Bureau, Wikipedia. 3: Dodd-Frank Act:

What It Does, Major Components, and Criticisms, Investopedia.