The Consumer Financial Protection Bureau’s website displayed an error message on Monday, shortly after the Trump administration ordered the U.S. government watchdog to halt its work.
The Trump administration directed the CFPB to “cease all supervision and examination activity” and pause work on investigations roughly 36 hours after President Donald Trump installed Russell Vought as the new director of the Office of Management and Budget.
Vought posted on X, “The CFPB has been a woke & weaponized agency against disfavored industries and individuals for a long time. This must end.”
Created around 2010, the CFPB was intended to be a financial regulator that ensured consumers weren’t exploited by major financial institutions like banks, mortgage companies and other lenders.
“It’s certainly a slippery slope, but we need to be careful here as this change approaches us,” said Michael Martin, who’s a branch manager at Fairway Mortgage in Raleigh.
Martin’s industry is heavily regulated by the CFPB. He said there are inherently checks and balances that come with general competition and state oversight, but the suspension of the CFPB rolls back federal regulation.
“I would like to think that the government overall is still watching over what we're doing from a financial standpoint, although, you know, certainly that's a big part of what the CFPB is there for,” Martin said.
The CFPB is responsible for writing rules, supervising financial institutions, and enforcing laws. The agency estimates it has put nearly $20 billion back in Americans’ pocketbooks since its inception around 2010.
Through its work, it has capped overdraft and late credit card payment fees, held lenders accountable for not disclosing excessive loan fees, and recently formed a rule that would prevent medical debt from impacting credit scores, opening up more opportunities for people to buy or rent a home.
“These are the kinds of things that are everyday experiences,” said Adam Rust, the director of financial services with the Consumer Federation of America.
Rust said the unprecedented move to suspend the agency would impact nearly everyone.
“Managing your finances can be hard and sometimes it’s really frustrating,” he said. “Sometimes the banks aren’t looking out for you, they’re looking out for themselves. CFPB steps in. They’re the ones minding the gap.”
Since Congress created the agency, it can’t be eliminated without a separate act of Congress, though the head of the agency can choose what’s enforced.