WASHINGTON — The Trump administration has instructed the Consumer Financial Protection Bureau (CFPB) to halt nearly all of its operations, effectively putting a stop to an agency established to safeguard consumers in the aftermath of the 2008 financial crisis and the subsequent subprime mortgage scandal.
In a Saturday night email confirmed by The Associated Press, Russell Vought, the newly appointed director of the Office of Management and Budget, ordered the CFPB to cease work on proposed regulations, delay the implementation of any finalized rules that have yet to take effect, and suspend all investigative activities, as well as refrain from initiating any new investigations. The CFPB has long been a focal point for conservative criticism since President Barack Obama advocated for its creation within the 2010 financial reform legislation that followed the 2007-2008 financial downturn.
The email further directed the bureau to “cease all supervision and examination activity.”
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On Sunday, administration officials declared that the CFPB’s Washington, D.C. headquarters would be closed for the week of February 10 to February 14, as per an email obtained by The Associated Press. The email did not provide a reason for the closure.
“Employees and contractors are to work remotely unless instructed otherwise,” read the communication sent to the staff at headquarters.
This directive aligns with similar initiatives from the White House aimed at dismantling the U.S. Agency for International Development.
As the CFPB was established by Congress, a separate legislative act would be necessary to formally disband it. However, the agency’s leadership holds the authority to determine which enforcement actions, if any, to pursue.
Elon Musk expressed his sentiments on social media, stating, “CFPB RIP” on Friday. Additionally, the CFPB website was down on Sunday, displaying a “page not found” message.
In a social media post late Saturday, Vought indicated that the CFPB would not withdraw its upcoming funding from the Federal Reserve, claiming that its current reserves of $711.6 million are “excessive.” Congress had mandated that the bureau be funded by the Fed to protect it from political influences.
“This spigot, long contributing to CFPB’s lack of accountability, is now being turned off,” Vought stated on X.
Since its inception, the CFPB claims to have secured nearly $20 billion in financial relief for U.S. consumers through canceled debts, compensation, and reduced loan payments. Last month, the bureau filed a lawsuit against Capital One, alleging that the bank misled consumers regarding its high-interest savings accounts and “cheated” customers out of more than $2 billion in lost interest payments.
Dennis Kelleher, president of the advocacy group Better Markets, remarked, “That’s why Wall Street’s largest banks and Trump’s billionaire allies despise the bureau: it acts as an effective watchdog for financial issues and has stood alongside millions of Americans—both Republicans and Democrats—in confronting financial predators, scammers, and crooks.”
This action against the CFPB also underscores the tension between Trump’s populist promises to reduce costs for working-class families and his commitment to less government regulation.
During his campaign, Trump proposed capping credit card interest rates at 10%, following a significant increase in rates above 20% as the Federal Reserve raised interest rates in 2022 and 2023. The CFPB had begun exploring how to implement that proposal.
While the bureau can still accept complaints, it is unable to conduct examinations or pursue ongoing investigations, according to a source familiar with the agency who requested anonymity to discuss its operations. This directive is also understood to limit its ability to communicate with regulated companies, consumer advocates, or external organizations.
Musk’s team would also have access to complaints, investigations, and regulatory oversight data, raising concerns about potential conflicts if Musk’s company X were to launch a payment system, as the CFPB possesses data on competitors like Cash App, the insider noted.
Vought’s email follows a similar directive from Treasury Secretary Scott Bessent on February 3 and marks another step by the Trump administration to swiftly limit the operations of federal agencies viewed as excessive.
The CFPB was created in response to the 2007-2008 housing bubble and financial crisis, largely attributed to fraudulent mortgage lending. It was envisioned by Massachusetts Democratic Senator Elizabeth Warren and has faced numerous lawsuits from major banks and financial industry groups.
“Vought is giving big banks and large corporations the green light to exploit families,” Warren criticized.
Recently, Warren urged Trump to collaborate with the bureau to protect Americans from de-banking, where banks close customer accounts over perceived financial, legal, or reputational risks.
“I know that the Consumer Financial Protection Bureau is a favorite target of Republicans on this Committee, but it is the primary agency in our government actively working to prevent unfair de-banking,” she stated during a Senate Banking, Housing and Urban Affairs Committee hearing.
Vought’s email indicated that President Donald Trump appointed him acting director of the CFPB on Friday, following the dismissal of the previous director, Rohit Chopra, on February 1. Vought had previously played a role in Project 2025, a policy framework for the Trump administration that Trump attempted to distance himself from during last year’s campaign.
Under Chopra’s leadership, the CFPB approved regulations to limit overdraft fees by banks, address junk fees, and proposed restrictions on data brokers selling sensitive personal information like Social Security numbers.
—Contributions to this report were made by Associated Press writers Josh Boak and Chris Megerian, with additional reporting from Holly Ramer in Concord, New Hampshire.
