After the 2008 financial crisis, there was a need for a government institution to protect consumer rights in the financial sector, such as banks, which has already been established by the Consumer Protection Office.
The office was established within the Wall Street Reform and Consumer Protection project passed by Congress and became law in July 2010 after Senator Elizabeth Warren (Massachusetts), then professor at the Harvard Law School, proposed the establishment of a consumer protection watchdog when dealing with financial institutions.
The law gave the office broad powers to carry out oversight functions for consumers who deal with banks, credit card companies, loan lenders and mortgage loan companies, as well as lenders and debt collectors.
The idea of establishing the office prevents financial companies from exploiting consumers as they did before the financial crisis, as they were not subject to adequate government control.
The state institution gets its funding from the Federal Reserve, and its director can not be removed because of his political orientation, but on the basis of his job performance.
Since the establishment of the Consumer Protection Office, Americans who have dealt with financial institutions in the country have been affected in some way by the laws set by the Bureau to regulate the banking sector, Voice of America reports.
Since its establishment, the agency has imposed fines against banks, mortgage lenders and other financial institutions, most notably requiring Wells Fargo to pay a fine of $ 100 million after disclosing millions of accounts he issued to his clients without their consent.
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