What Is Consumer Surplus? Consumer surplus is an economic measurement of consumer benefits resulting from market competition. A consumer surplus happens when the price that consumers pay for a product or service is less than the price they’re willing to pay. It’s a measure of the additional benefit that consumers receive because they’re paying less
What Is the Consumer and Business Lending Initiative (CBLI)? The Consumer and Business Lending Initiative (CBLI) was a federal program that aimed to resolve the 2008 credit crisis and restore confidence in the economy through the government purchase of a massive amount of private debt. The aim was to unlock credit and kickstart the economy by
What Is a Consumer Credit File? A consumer credit file is a collection of data about an individual’s borrowing and repayment activity. Your credit file contains the information that determines your credit score. When you apply for an automotive, mortgage, or other type of loan, the financial institution will check your credit file to see
What Is the Consumer Credit Protection Act of 1968 (CCPA)? The Consumer Credit Protection Act Of 1968 (CCPA) is federal legislation that created protections for consumers from banks, credit card companies, and other lenders. The act mandates disclosure requirements that must be followed by consumer lenders and auto-leasing firms and has been expanded significantly since
What Is Consumer Debt? Consumer debt consists of personal debts that are owed as a result of purchasing goods that are used for individual or household consumption. Credit card debt, student loans, auto loans, mortgages, and payday loans are all examples of consumer debt. These stand in contrast to other debts that are used for
What Is Consumer Discretionary? Consumer discretionary is a term that describes goods and services that consumers consider non-essential but desirable if their available income is sufficient to purchase them. Examples of consumer discretionary products and services can include durable goods, high-end apparel, entertainment, leisure activities, and automobiles. Companies that supply these types of goods and
What Is the Consumer Financial Protection Act? The Consumer Financial Protection Act of 2010 is an amendment to the National Bank Act designed to identify and explain the standards that apply to national banks. The Consumer Financial Protection Act aims to increase oversight and clarify the consumer finance laws governing financial transactions to protect consumers
What Is the Consumer Financial Protection Bureau (CFPB)? The Consumer Financial Protection Bureau (CFPB) is a regulatory agency charged with overseeing financial products and services that are offered to consumers. The CFPB is divided into several units—research, community affairs, consumer complaints, the Office of Fair Lending, and the Office of Financial Opportunity. These units work
What Are Consumer Goods? Consumer goods are products bought for consumption by the average consumer. Also called final goods, consumer goods are the end result of production and manufacturing. Clothing, food products, and dishwashers are examples of common consumer goods. The Consumer Product Safety Act of 1972 regulates the sale of most common consumer goods
What Is Consumer Interest? Consumer interest is interest charged on consumer credit accounts such as personal loans, automobile loans and credit card debt. Unlike mortgage interest and some interest charged on student loans, consumer interest from personal loans, credit cards, and other debt is a nondeductible tax expense. Key Takeaways Consumer interest is interest charged on
