WASHINGTON — The Trump administration has issued directives to the Consumer Financial Protection Bureau (CFPB) to halt almost all of its operations. This move effectively curtails the agency designed to protect consumers, which emerged in response to the financial turmoil of 2008 and the ensuing subprime mortgage crisis.
In an email sent on Saturday night and confirmed by The Associated Press, Russell Vought, the recently appointed head of the Office of Management and Budget, instructed the CFPB to stop work on proposed regulations, postpone the implementation of finalized rules that are not yet in effect, and freeze all investigative activities. The bureau has been a frequent target of conservative critique since President Barack Obama supported its formation through the financial reform legislation in 2010, following the significant economic downturn of 2007-2008.
The communication further ordered the agency to “cease all supervision and examination activity.”
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On Sunday, officials from the administration announced that the CFPB’s headquarters in Washington, D.C., would be closed for the week from February 10 to February 14, according to an email acquired by The Associated Press. The message did not specify the reason for the closure.
“Employees and contractors are to work remotely unless otherwise directed,” the email informed staff at the headquarters.
This order is in line with other initiatives from the White House aimed at dismantling agencies such as the U.S. Agency for International Development.
Since the CFPB was established through congressional action, disbanding it would require a separate legislative effort. Nonetheless, the agency’s leadership has the discretion to decide which enforcement actions to pursue, if any.
Elon Musk shared his views on social media, commenting, “CFPB RIP” on Friday. Additionally, the CFPB’s website was inaccessible on Sunday, showing a “page not found” error.
In a late Saturday post, Vought mentioned that the CFPB would not withdraw its anticipated funding from the Federal Reserve, arguing that the bureau’s existing reserves of $711.6 million were “excessive.” Congress had mandated this funding structure to shield the agency from political pressures.
“This spigot, long contributing to CFPB’s lack of accountability, is now being turned off,” Vought stated on X.
Since its formation, the CFPB claims to have secured nearly $20 billion in financial relief for American consumers through debt cancellations, compensation, and reduced loan payments. Recently, the bureau took legal action against Capital One, accusing the bank of misleading consumers about its high-interest savings accounts and allegedly depriving customers of more than $2 billion in interest payments.
Dennis Kelleher, the president of the advocacy organization Better Markets, noted, “That’s why Wall Street’s biggest banks and Trump’s billionaire allies resent the bureau: it serves as a vigilant watchdog on financial matters and has supported millions of Americans—both Republicans and Democrats—in challenging financial predators, scammers, and criminals.”
This development also highlights the discord between Trump’s populist vows to alleviate costs for working-class families and his dedication to reducing governmental oversight.
During his campaign, Trump suggested capping credit card interest rates at 10%, particularly after rates surged past 20% due to the Federal Reserve’s rate hikes in 2022 and 2023. The CFPB had begun examining how to implement this idea.
While the bureau can still receive complaints, it is unable to conduct examinations or pursue existing investigations, according to a source familiar with the agency who requested anonymity. This directive is also expected to restrict its communication with regulated entities, consumer advocates, and external organizations.
Musk’s team would also gain access to complaints, investigations, and regulatory oversight data, which raises concerns about possible conflicts should Musk’s company X decide 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 message from Treasury Secretary Scott Bessent on February 3 and represents another action by the Trump administration to swiftly curtail the functions of federal agencies deemed excessive.
The CFPB was created in response to the housing bubble and financial crisis of 2007-2008, largely caused by deceptive mortgage lending practices. It was conceptualized by Massachusetts Democratic Senator Elizabeth Warren and has encountered numerous lawsuits from major banks and financial institutions.
“Vought is giving large banks and corporations a free pass to take advantage of families,” Warren criticized.
Warren recently urged Trump to collaborate with the bureau to safeguard Americans from de-banking, a practice where banks close customer accounts over 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 key agency in our government actively striving to prevent unjust 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 that he attempted to distance himself from during last year’s campaign.
Under Chopra’s leadership, the CFPB implemented regulations aimed at capping overdraft fees, addressing junk fees, and proposing limits on data brokers who sell sensitive personal information, including Social Security numbers.
—This report includes contributions from Associated Press writers Josh Boak and Chris Megerian, with additional reporting from Holly Ramer in Concord, New Hampshire.
