Catenaa, Monday, February 10, 2025 – The Trump administration has ordered the Consumer Financial Protection Bureau (CFPB) to cease nearly all operations, effectively shutting down the agency established after the 2008 financial crisis to protect consumers.
Russell Vought, the newly appointed director of the Office of Management and Budget, instructed the CFPB to halt proposed rules, suspend enforcement actions, and cease investigations, according to a Saturday night email according to Associated Press.
The agency’s headquarters will also be closed February 10-14.
The move aligns with broader White House efforts to scale back federal agencies. Since the CFPB was created by Congress, its complete dissolution would require legislative action, but the administration has curtailed its enforcement capabilities.
The CFPB, which has secured nearly $20 billion in financial relief for consumers, recently sued Capital One for allegedly misleading customers. Critics say its closure benefits large financial institutions at the expense of consumer protections.
Democrat Sen. Elizabeth Warren, who spearheaded the bureau’s creation, accused the administration of enabling corporate abuse. “Vought is giving big banks the green light to scam families,” she said.
Despite Trump’s campaign pledge to cap credit card interest rates at 10%, the CFPB’s shutdown halts work on that initiative. The administration’s broader deregulation push continues, with Treasury Secretary Scott Bessent issuing a similar directive to federal agencies last week.
