As the one year anniversary of the Consumer Financial Protection Bureau’s operational beginning approaches, there is still uncertainty regarding the future of the agency’s long-term existence.
The GOP and banking industry lobbied to prevent the CFPB’s creation and to disassemble the federal consumer watchdog agency, while Republican presidential hopeful Mitt Romney has vowed to repeal the 2010 Dodd-Frank Act, the financial reform law that mandated the agency’s establishment, The Huffington Post reports.
The agency’s concept was developed by Democratic hopeful Elizabeth Warren. Warren will challenge Sen. Scott Brown (R-Mass.) for his seat in the elections.
President Obama spearheaded the agency’s creation primarily in response to illegal activities that led up to the collapse of the housing market. He signed the Dodd-Frank Act into law in July 2010. The agency became operational one year later on July 21, 2011.
Obama nominated Richard Cordray as the director of the agency. Cordray’s nomination remains controversial, as critics maintain that the appointment is unconstitutional. Obama chose not to nominate Warren, as he allegedly expected staunch opposition from the financial industry and in the Senate.
Last week, the agency took its first enforcement action, lodged against Capital One, charging the company $210 million in fines for its use of deceptive marketing practices. Additionally, Capital One will be forced to pay $140 million in full refunds to close to two million customers, The Huffington Post reports.