Consumer financial protections face complete disorder because of the Trump administration’s quick actions against the Consumer Financial Protection Bureau (CFPB) which puts $18 trillion worth of U.S. consumer debt at risk for reduced oversight. Consumer advocates together with federal unions created strong legal objections after the Trump administration froze important regulations while suspending agency work.
During this week Russell Vought who replaced Richard H. Cordray as Acting CFPB Director ordered staff to refrain from conducting most bureau work and stay away from the office. When users visited the CFPB website on Monday they encountered an online “404: Page not Found” error page which indicated serious internal organizational problems. According to Vought the agency will not pursue upcoming funding because such financing would not be reasonable.
The current turmoil threatens to undo CFPB’s previous authority including the December 2022 overdraft fee limit to $5 and the March 2023 reduction of credit card late fee payments to $8. The Republican-led House committee moved quickly to draft legislation aimed at repealing the overdraft fee limit while both rules face opposition from the legislative branch. 
Conservative critics believe the administration carries out measures that pursue the elimination of the CFPB in line with Project 2025. Over its twenty-one-year existence the CFPB has paid back approximately $20 billion in relief to consumers since Biden took office.
Analysts who protect consumer rights express serious concerns while the bureau’s survival faces uncertainty because lessened oversight would enable banks to increase their harmful financial practices against millions of customers. The congressional efforts to set credit card interest rates at 10% encounter substantial resistance because of the political split in Congress.
The dismantling of the CFPB represents an important turning point for U.S. consumers which will affect both financial fairness and consumer accountability measures throughout the country.
