Treasury Secretary Scott Bessent has ordered a widespread shutdown of operations Monday at the Consumer Financial Protection Bureau (CFPB) following his appointment as acting director Monday after President Donald Trump fired the agency’s previous leader Rohit Chopra over the weekend. The news was first reported by Bloomberg Law.
According to an internal email obtained by Bloomberg Law, Bessent directed an immediate suspension of the agency’s rulemaking, communications, litigation and other activities. The only operations permitted to continue are those explicitly authorized by Bessent or required by law.
The directive affects several pending regulations, including a ban on reporting medical debt on consumer credit reports that would’ve taken effect March 17, and a new $5 limit on overdraft fees. The agency has also been instructed to pause all enforcement investigations and settlements, Bloomberg Law reported.
This likely means that CFPB’s recent lawsuit involving Rocket Homes and The Jason Mitchell Group for an alleged referral kickback scheme is on hold until Bessent decides whether to proceed — or to dismiss the case entirely.
Here’s a list of other pending CFPB lawsuits that may be up in the air, including those against Draper & Kramer Mortgage, Vanderbilt Mortgage, Equifax, Experian, Fairway Independent Mortgage and other companies.
The move comes amid broader efforts by the new administration to reduce federal regulatory oversight with an eye on spurring business investment and growth. Elon Musk’s Department of Government Efficiency (DOGE) has recently sought to close the U.S. Agency for International Development, despite congressional funding mandates.
While the directive halts public communications and research publication, it does not explicitly address the CFPB’s supervisory authority over regulated companies. Sources within the agency, speaking anonymously to Bloomberg Law, said the legal department is reviewing the full scope of the order.
As of Dec. 3, 2024, the CFPB reported that it had secured $21 billion in financial relief for consumers through its enforcement actions and supervisory work. Additionally, the agency imposed $5 billion in civil penalties on companies and individuals that violated the law for distribution through its victims relief fund. An estimated 205 million consumers or consumer accounts are eligible to receive relief from the CFPB’s work.
“An estimated 205 million consumers or consumer accounts are eligible to receive relief from the CFPB’s work.”
Have any of the 205 million consumers or consumer accounts ever received a dime of the this $21 billion dollars CFPB supposedly collected on the consumer’s behalf? I’ve never received an ounce of help from the CFBP, I tell my side, the other party tells their side and CFPB closes the case, that’s how its been for years! Please just dismantle the CFPB, it’s a useless agency that’s really not on the side of the average consumer but on the side of financial corporations and their own pockets.
Exactly right.
The average salary of over 5400 employees at the CFPB was $134,723 in 2023. This is 87.8 percent higher than the national average for government employees and 74.7 percent higher than all other federal agencies. I’m tired of being scammed. Shut them down.