Last week, the secretive, unofficial “Department of Government Efficiency” (DOGE), headed by the unelected billionaire Elon Musk illegally ended all work by the Consumer Financial Protection Bureau (CFPB). Created by Congress in response to the 2008 financial crisis and recession, the CFPB is an independent agency of the US government responsible for protecting consumers in the financial sector.
CFPB’s jurisdiction includes banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors, for-profit colleges, and other financial companies operating in the United States, with primary focus on credit cards, mortgages, and student loans.
Funded by the Federal Reserve (not the federal budget) the CFPB has been an effective advocate for American consumers, returning over $21 billion to more than 29 million victims of illegal loan practices, excessive bank and credit card fees, and other improper financial dealings. In just one week, the CFPB recovered $15 million from Equifax, $120 million from CashApp, $10 million from an auto lender, and filed charges against Capital One for cheating on interest payments.
If the CFPB is so efficient and effective, why have President Trump, Musk, and Treasury Secretary Scott Bessent targeted the bureau for elimination?
Financial institutions have been opposed to this bureau since its inception, objecting to the regulations imposed and that they have been forced to act ethically and refund or reimburse consumers for their violations.
Within the past several weeks Trump has initiated the $Trump cryptocurrency program and Musk has entered into an agreement with VISA to provide a financial payment application on X (formerly Twitter). These ventures would be subject to the rules and regulations of the CFPB which would require them to operate legally and ethically. (Note: over 800,000 investors in the $Trump crypto have already lost about $2 billion in investments while the Trump Organization collected approximately $100 million in trading fees.)
Consumers and others should contact their members of Congress and urge them to restore and protect the CFPB. Calling the Congressional Switchboard at (202) 224-3121 will allow direct connection to your legislators’ offices.
David B. Kyle (New Columbia, PA)