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A2 u.s. News
Monday 10 February 2025
Trump official orders consumer protection agency to stop work

By CHRISTOPHER RUGABER of Congress, it would require had started work on how
AP Economics Writer a separate act of Congress that proposal would be im-
WASHINGTON (AP) — The to formally eliminate it. But plemented.
Trump administration has the head of the agency The bureau can still take
ordered the Consumer Fi- has discretion over what en- complaints, but it can't con-
nancial Protection Bureau forcement actions to take, duct exams or pursue exist-
to stop nearly all its work, if any. ing investigations, accord-
effectively shutting down Yet Elon Musk commented, ing to a person familiar with
an agency that was created "CFPB RIP" on social media the agency who insisted on
to protect consumers after site X on Friday. And the CFPB anonymity to discuss CFPB
the 2008 financial crisis and homepage on the Internet business. The memo is also in-
subprime mortgage-lending was down Sunday, replaced terpreted as blocking it from
scandal. by a message reading "page communicating with com-
Russell Vought, the newly not found." panies it regulates, consumer
installed director of the Of- Also late Saturday, Vought advocates or other outside
fice of Management and Russell Vought, President Donald Trump's choice for Director said in a social media post groups.
Budget, directed the CFPB, of the Office of Management and Budget, appears before the that the CFPB would not Musk's team would also have
in a Saturday night email Senate Budget Committee during a hearing to examine his withdraw its next round of access to complaints, investi-
confirmed by The Associ- nomination, on Capitol Hill in Washington, Jan. 22, 2025. funding from the Federal gations and regulatory over-
ated Press, to stop work on Associated Press Reserve, adding that its cur- sight data. The access raises
proposed rules, to suspend tigations. The agency has 2007-2008 financial crisis. rent reserves of $711.6 mil- uncomfortable questions if
the effective dates on any been a target of conserva- The email also ordered the lion is "excessive." Congress Musk's company X launches
rules that were finalized but tives since President Barack bureau to "cease all supervi- directed the bureau to be a payments system as the
not yet effective, and to Obama pushed to include it sion and examination activ- funded by the Fed to insulate CFPB has data on competi-
stop investigative work and in the 2010 financial reform ity." it from political pressures. tors such as Cash App, the
not begin any new inves- legislation that followed the Since the CFPB is a creation "This spigot, long contributing person said.Vought's email
to CFPB's unaccountability, follows a similar directive
is now being turned off," from Treasury Secretary Scott
Vought said on X. Bessent Feb. 3 and is the lat-
The CFPB says that it has est move by the Trump ad-
obtained nearly $20 billion ministration to rapidly curtail
in financial relief for U.S. the work of federal agencies
consumers since its found- that they have deemed ex-
ing in the form of canceled cessive.
debts, compensation, and Obama spearheaded the
reduced loans. Last month, creation of the bureau in the
the bureau sued Capital wake of the 2007-2008 hous-
One for allegedly mislead- ing bubble and financial
ing consumers about its offer- crisis, which was caused in
ings for high-interest savings part by fraudulent mortgage
accounts — and "cheating" lending. It was the brainchild
customers out of more than of Massachusetts Democrat-
$2 billion in lost interest pay- ic Sen. Elizabeth Warren and
ments as a result. has attracted lawsuits from
Dennis Kelleher, president large banks and financial
of Better Markets, an advo- industry trade associations.
cacy group, said, "that's why "Vought is giving big banks
Wall Street's biggest banks and giant corporations the
and Trump's billionaire allies green light to scam families,"
hate the bureau: it's an ef- Warren said.
fective cop on the finance "I know that the Consumer
beat and has stood side-by- Financial Protection Bureau
side with hundreds of millions is a favorite whipping boy of
of Americans — Republicans Republicans on this Com-
and Democrats — battling mittee, but the CFPB is the
financial predators, scam- main agency in our govern-
mers, and crooks." ment that is actively working
The administration's move to stop unfair de-banking,"
against the CFPB also high- she said at a hearing of the
lights the tensions between Senate Banking, Housing and
Trump's more populist promis- Urban Affairs Committee.
es to lower costs for working- Vought's email said that
class families and his pledge President Donald Trump had
to reduce government regu- made him acting director of
lation. the CFPB on Friday. Trump
During the campaign, Trump fired the previous director of
said he would cap credit the bureau, Rohit Chopra,
card interest rates at 10%, on Feb. 1. Vought was an
after they had soared to architect of Project 2025, a
record levels above 20%, policy blueprint for the Trump
on average, as the Federal White House that Trump tried
Reserve lifted interest rates to disavow during last year's
in 2022 and 2023. The CFPB campaign.q