WASHINGTON — The Trump administration has ordered the Consumer Financial Protection Bureau (CFPB) to suspend nearly all of its activities, effectively halting the operations of an agency that was established to protect consumers following the 2008 financial crisis and the subsequent subprime mortgage debacle.
In an email sent late Saturday and confirmed by The Associated Press, Russell Vought, the newly appointed director of the Office of Management and Budget, instructed the CFPB to stop working on proposed regulations, postpone the enforcement of any finalized rules that have yet to take effect, and suspend all investigative efforts, including the initiation of new investigations. The CFPB has been a target of conservative criticism since its inception, as President Barack Obama advocated for its creation as part of the 2010 financial reform efforts that followed the turmoil of 2007-2008.
The email also directed the bureau to “cease all supervision and examination activity.”
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On Sunday, administration officials announced that the CFPB’s headquarters in Washington, D.C. would be closed from February 10 to February 14, according to an email obtained by The Associated Press. The message did not specify the reason for the closure.
“Employees and contractors are to work remotely unless otherwise directed,” stated the communication sent to headquarters staff.
This directive aligns with other initiatives from the White House aimed at dismantling the U.S. Agency for International Development.
Even though the CFPB was created by Congress, disbanding it would require a separate legislative act. However, the agency’s leadership has the discretion to decide which enforcement actions to pursue.
Elon Musk voiced his opinion on social media by saying, “CFPB RIP” on Friday. Adding to the concerns, the CFPB’s website was inaccessible on Sunday, displaying a “page not found” error.
In a social media post on Saturday, Vought claimed that the CFPB would not be receiving its upcoming funding from the Federal Reserve, arguing that its current balance of $711.6 million is “excessive.” Congress had mandated that the bureau be funded by the Fed to keep it insulated from political influences.
“This spigot, which has long contributed to CFPB’s lack of accountability, is now being turned off,” Vought stated on X.
Since its establishment, the CFPB claims to have secured nearly $20 billion in financial relief for U.S. consumers through debt cancellation, compensation, and reduced loan payments. Last month, the bureau filed a lawsuit against Capital One, accusing the bank of misleading customers about its high-interest savings accounts and depriving them of over $2 billion in interest payments.
Dennis Kelleher, president of the advocacy group Better Markets, commented, “That’s why Wall Street’s largest banks and Trump’s billionaire allies despise the bureau: it effectively monitors financial issues and has supported millions of Americans—both Republicans and Democrats—in their battles against financial predators, scammers, and crooks.”
This move against the CFPB highlights the ongoing conflict between Trump’s populist promises to ease the financial burden on working-class families and his commitment to reducing government oversight.
During his campaign, Trump suggested capping credit card interest rates at 10%, following a marked increase in rates exceeding 20% as the Federal Reserve raised interest rates in 2022 and 2023. The CFPB had started to explore how to implement this proposal.
Although the bureau can still accept consumer complaints, it cannot conduct examinations or pursue ongoing investigations, according to a source familiar with the agency who requested anonymity. This directive also appears to limit its ability to communicate with regulated entities, consumer advocates, or external organizations.
Musk’s team could potentially access complaints and regulatory data, raising concerns about conflicts of interest if his company, X, were to launch a payment system, as the CFPB holds data on competitors like Cash App, according to the insider.
Vought’s email follows a similar directive from Treasury Secretary Scott Bessent on February 3 and signifies another effort by the Trump administration to quickly curtail the functions of federal agencies deemed excessive.
The CFPB was created in the wake of the 2007-2008 housing bubble and financial crisis, which was largely attributed to fraudulent mortgage practices. It was envisioned by Massachusetts Democratic Senator Elizabeth Warren and has faced numerous lawsuits from major banks and financial industry organizations.
“Vought is giving big banks and large corporations the green light to exploit families,” Warren criticized.
Recently, Warren called on Trump to work with the bureau to protect Americans from de-banking, a scenario where banks close customer accounts due to perceived financial, legal, or reputational risks.
“I understand that the Consumer Financial Protection Bureau is often a target for Republicans on this Committee, but it is the primary government agency actively working to prevent unfair de-banking,” she remarked during a Senate Banking, Housing and Urban Affairs Committee hearing.
Vought’s email indicated that President Donald Trump appointed him as the acting director of the CFPB on Friday, following the removal of the previous director, Rohit Chopra, on February 1. Vought had previously been involved in Project 2025, a policy framework for the Trump administration, which Trump attempted to distance himself from during last year’s campaign.
Under Chopra’s leadership, the CFPB had approved regulations to limit bank overdraft fees, address junk fees, and proposed restrictions on data brokers selling sensitive personal information such as Social Security numbers.
—This report includes contributions from Associated Press writers Josh Boak and Chris Megerian, with additional reporting by Holly Ramer in Concord, New Hampshire.
