Consumer Financial Protection Bureau Halts All New Work
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Updated Feb. 10.
Newly appointed acting director Russell Vought halts all CFPB work
Russell Vought, who was recently confirmed by the Senate as director of the Office of Management and Budget, has been named acting director of the Consumer Financial Protection Bureau. As one of the authors of Project 2025 (which lays out a conservative policy agenda), Vought has previously shown support for getting rid of the CFPB. His first actions as head of the bureau moved decidedly in that direction.
Over the weekend, CFPB staff were directed to stop nearly all of their work, including anything related to pending investigations, and the bureau’s headquarters were closed for the next week, according to news reports. At the same time, Vought took to social media to announce plans to cut off the agency’s funding. Then, in an email to staff on Monday, Vought told workers to halt all work tasks.
DOGE installs itself in the CFPB
On Friday, the union representing CFPB employees said in a statement that the Department of Government Efficiency, run by billionaire Elon Musk, is now embedded within the CFPB. The union NTEU 335 said that three DOGE team members have arrived at the CFPB headquarters.
Musk has already targeted the United States Agency for International Development (USAID) by firing staff. On Friday, President Trump called for USAID’s closure. The CFPB worker union and other consumer advocates are concerned that the same fate could befall the bureau.
Last week, Musk posted on X, “Delete CFPB.”
The Consumer Financial Protection Bureau, or CFPB, is a government agency that oversees the consumer finance industry, including banks, lenders and other financial institutions. As its name suggests, it’s a consumer-focused agency whose goal is to ensure people can access fair, transparent and competitive markets for financial products. It also provides consumer financial education.
What the CFPB does
The CFPB was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010. It was seen as a chance to bring better enforcement and accountability to the consumer finance industry after the financial crisis exposed borrowers’ vulnerability in a complicated marketplace that wasn’t being held accountable for unfair, deceptive and abusive lending practices.
By creating a consumer protection agency, the federal government initiated supervision of financial product and service providers that had largely flown under the radar. It also took over responsibilities that had been divided among several government offices.
In practice, the CFPB focuses on making rules that improve transparency, enforcing consumer laws and acting on consumer complaints.
What the CFPB has done lately
Recent CFPB actions include:
Cash App refunds: The CFPB ordered Block, which owns Cash App, to pay refunds and penalties of up to $175 million for maintaining poor security protocols that hurt its users, according to a Jan. 16 announcement.
The agency has ordered Block to pay refunds and other redress of up to $120 million to users who lost money due to fraud and weren’t reimbursed as they should’ve been or who lost access to their account during lengthy fraud investigations. The order also directs the company to set up around-the-clock customer service and fully investigate users’ disputes over transactions, offering refunds where warranted. Additionally, Block must pay a $55 million penalty to the CFPB victims relief fund.
Capital One lawsuit: The CFPB filed a lawsuit on Jan. 14 against Capital One, alleging it cheated millions of consumers out of billions of dollars in interest by hiding an opportunity for customers who had an existing 360 Savings account to open a new, similarly named savings account that offered a higher interest rate.
Medical debt removal: A new rule, set to take effect later this year, will remove an estimated $49 billion in unpaid medical debt from consumers’ credit reports and prevent medical bills from appearing on credit reports going forward. It also prohibits lenders from considering medical debt when evaluating a borrower’s ability to repay a loan.
Overdraft fee reductions: The CFPB finalized a rule in December that cuts overdraft fees charged by large banks and credit unions, including those with more than $10 billion in assets. Major banks typically charge about $35 for each overdraft transaction. Under the rule, banks would have to drastically cut their fees or treat overdraft services like any other lending program by disclosing the terms. The rule will take effect Oct. 1.
Credit card rewards program warning: The CFPB announced in January that it is cracking down on credit card companies whose rewards programs violate federal law.
Credit repair refund: In December, the agency began distributing $1.8 billion to 4.3 million consumers who were charged illegal advance fees by Lexington Law and CreditRepair.com, which used telemarketing to offer credit repair services to customers.
Apple Card fines: In October, the CFPB ordered Apple and Goldman Sachs to pay nearly $90 million in combined penalties after it determined Apple Card customers were harmed by “customer service breakdowns and misrepresentations.”
Late fee restrictions: A new rule issued in March cut the typical credit card late fee from $32 to $8. At the time, the agency estimated it could help roughly 45 million consumers who are charged late fees achieve more than $10 billion in annual savings. It’s one of several rules designed to eliminate junk fees that consumers are forced to pay across a variety of services. However, the rule has yet to take effect. It was blocked by a lawsuit filed by the U.S. Chamber of Commerce, which is still ongoing.
What the CFPB can do for you
Here are some direct links to the CFPB’s services for consumers:
Submit a complaint: The agency takes consumer complaints about financial products and services, including credit cards, mortgages and other consumer loans, credit reporting and debt collection. Not only will the CFPB work to get you a response from the company, it also uses consumer complaints to prioritize its initiatives.
Blow the whistle: Anyone currently or previously working in the financial industry who wants to report misconduct can do so using dedicated communication channels.
How to reach the CFPB
The best way to make specific complaints, comments or reports is through the links above. Here are a few more ways to find out information from the CFPB or contact the agency.
CFPB website: consumerfinance.gov. Its Ask CFPB library can answer additional questions.
CFPB phone number: 855-411-2372
Mailing address for complaints:
Consumer Financial Protection Bureau
PO Box 27170
Washington, DC 20038
Mail address for all other mail:
Consumer Financial Protection Bureau
1700 G St. NW
Washington, DC 20552
