The Consumer Financial Protection Bureau (CFPB)—the agency responsible for protecting Americans from predatory lending, banking fraud, and financial scams—is now under attack.
Russell Vought, the new Office of Management and Budget Director, has moved swiftly to cut off the CFPB’s funding and shut down its enforcement activities.
What is the CFPB and Why Does It Matter?
Created in 2011 after the 2008 financial crisis, the CFPB was designed to hold banks, credit card companies, mortgage lenders, and debt collectors accountable. Since its launch, it has:
- Recovered over $21 billion for consumers cheated by financial institutions.
- Cracked down on predatory lenders targeting low-income and minority communities.
- Fined major banks for illegal practices, including Wells Fargo and JPMorgan Chase.
- Helped consumers fight back against unfair credit card fees, debt collection harassment, and fraudulent loans.
Vought, who was just confirmed to his post on Thursday, wasted no time in targeting the CFPB. In a post on X (formerly Twitter), he announced that the bureau would be blocked from accessing more funding and declared its $711.6 million balance “excessive.” He also sent an internal email ordering employees to halt all investigations, enforcement actions, and public communications immediately.
This means:
- No more consumer fraud investigations
- No penalties for banks engaging in predatory practices
- No oversight of payday lenders, credit card companies, or mortgage providers
Senator Elizabeth Warren, who helped create the CFPB, slammed Vought’s move, accusing him of “giving big banks and giant corporations the green light to scam families.”
The decision comes as part of a broader government shake-up led by Elon Musk’s Department of Government Efficiency (DOGE), which has been aggressively scaling back federal agencies. Democrats are already calling the move illegal and hinting at a legal battle.
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