The dismantling of the Consumer Financial Protection Bureau (CFPB)

The Consumer Financial Protection Bureau (CFPB) has been ordered by the agency’s acting director, Russell Vought, to halt to all supervision, examination activities, and enforcement actions. In addition, employees have been told to work remotely as the CFPB’s DC headquarters will be closed through February 14, 2025.

Strategic Chaos

With this strategically occurring rapidly over the course of a weekend, and with employees being instructed to not make public comments, there was confusion regarding the agency’s ability to take action on complaints against businesses. We spoke with The Consumer Financial Protection Bureau on February 10, 2025 and confirmed that they’re still accepting consumer complaints.

Though the CFPB’s complaint portal is still active, the 404 error on the home page gives the illusion that the CFPB has been shuttered. The CFPB’S X/Twitter account was also disabled. According to House Committee on Financial Services, these were intentional acts to prevent consumers from seeking out important information.

What is the Consumer Financial Protection Bureau (CFPB)?

The Consumer Financial Protection Bureau (CFPB) is a U.S. government agency that oversees financial institutions to protect consumers from unfair, deceptive, or abusive practices. It enforces laws related to mortgages, credit cards, loans, and banking services, ensuring transparency and fair treatment.

The Consumer Financial Protection Bureau’s Success in Numbers

Perhaps the CFPB’s most well-known consumer victory was its case against Wells Fargo. The CFPB fined Wells Fargo $100 million for the widespread illegal practice of secretly opening unauthorized deposit and credit card accounts.

Since its establishment in 2011, the Consumer Financial Protection Bureau (CFPB) has achieved significant milestones in consumer protection.

$17.5 billion in relief: Through enforcement and supervisory actions, the CFPB has secured approximately $17.5 billion in monetary compensation, principal reductions, canceled debts, and other forms of consumer relief.
 

200 million consumer accounts impacted: An estimated 200 million consumer accounts have benefited from the CFPB’s efforts, receiving financial relief and protections.
 

Over 4 million consumer complaints handled: The CFPB has processed more than 4 million consumer complaints, addressing issues ranging from credit reporting errors to mortgage servicing problems.
 

$4 billion in civil penalties: The agency has imposed $4 billion in civil money penalties on companies and individuals violating consumer financial laws, with funds directed to the victims’ relief fund.
 

According to the Consumer Financial Protection Bureau’s complaint submission page, each week, the CFPB sends about 25,000 complaints about financial products and services to companies for response. Most companies respond within 15 days. This response time and the agency’s accomplishments underscore the Consumer Financial Protection Bureau’s pivotal role in safeguarding consumers within the financial marketplace. With this critical resource now on the verge of being obsolete, consumers are left vulnerable, lacking a dedicated platform to file complaints and hold financial institutions accountable for harmful practices.

Although the Consumer Financial Protection Bureau has not officially been shuttered, the writing is on the while that it’s just a matter of time before the agency is non-existent.

A Timeline of the Dismantling of the Consumer Financial Protection Bureau

November 27, 2024

• Elon Musk posted on X (formerly Twitter), called for the deletion of the Consumer Financial Protection Bureau, tweeting, “Delete CFPB. There are too many duplicative regulatory agencies.”
   

January 28, 2025

• Representative Keith Self introduced companion legislation in the House to eliminate CFPB funding.
• The Trump administration announced a “deferred resignation program,” offering financial incentives to federal employees to resign, with a deadline to accept by February 6.

January 29, 2025

• Senator Ted Cruz introduced the “Defund the CFPB Act,” aiming to eliminate the agency’s funding by stopping transfers from the Federal Reserve.

February 1, 2025

• Donald Trump dismissed CFPB Director Rohit Chopra.  
   

February 3, 2025

• Treasury Secretary Scott Bessent, the acting CFPB director sent an email to employees instructing them to cease virtually all work.
   

February 5, 2025

• CFPB employees filed an internal grievance to block the deferred resignation program, requesting the agency retract the program and allow any employee who had accepted the offer to rescind their resignation.
   

February 6, 2025

• A U.S. judge temporarily blocked the Trump administration’s proposed buyout for federal workers until at least February 10, following legal challenges by labor unions.
   

February 7, 2025

• Elon Musk tweeted, “CFPB RIP”.
• Musk’s team took control of key systems at the CFPB, as part of his role in the Department of Government Efficiency (DOGE).
• The Winter 2025 Consumer Advisory Board Meeting, scheduled for February 11, was canceled.
• The Winter 2025 Combined Community Bank Advisory Council and Credit Union Advisory Council Meeting, scheduled for February 12, was canceled.
• The Consumer Financial Protection Bureau’s official Twitter/X page is deactivated.

February 8, 2025:

• The Consumer Financial Protection Bureau’s home page was partially down, displaying a 404 error.

February 9, 2025

• Russell Vought, the acting head of the Consumer Financial Protection Bureau (CFPB), announced that the agency would halt the flow of new funding, stating that further funding was not “reasonably necessary” for its operations.

February 9, 2025

• Consumer Financial Protection Bureau employees are told to work remotely as their Washington, DC headquarters is expected to be closed until February 14, 2025.

February 10, 2025

• A U.S. judge is set to review the legality of President Trump’s buyout plan for federal workers, which has been contested by federal workers’ unions.

How Consumers Can Protect Themselves Without the Consumer Financial Protection Bureau

Though there are alternative resources available should consumers encounter issues with a financial product or service, they don’t carry the same authority or comprehensive support as the Consumer Financial Protection Bureau.

The Office of the Comptroller of the Currency (OCC) regulates and supervises national banks and federal savings associations to ensure they operate safely, comply with laws, and protect consumers. On its Help With my Bank page at helpwithmybank.gov, the OCC lists a variety of financial services that they’re able to assist with.

The Better Business Bureau (BBB), though not a government entity, has long served as a trusted resource for consumers seeking to resolve disputes with businesses. While it doesn’t have the same regulatory authority as the CFPB, it plays a key role in mediating complaints and helping to ensure businesses uphold ethical practices.

Consumers can take proactive steps to protect themselves before disputes ever arise. Documenting transactions by saving copies of terms and conditions before they’re signed, and keeping detailed records of communications with companies, can provide essential documentation if a dispute occurs. By staying vigilant and organized, consumers can be better prepared to address any challenges and safeguard their rights in the financial marketplace.

Doing due diligence and researching companies, which includes reading their reviews, is one of the first steps that consumers can take to protect themselves from businesses with known bad business practices. For this to be truly effective, consumers should share their own experiences in public reviews, which not only informs others, but also encourages companies to engage in fair business practices.