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Staff at the Consumer Financial Protection Bureau, a watchdog agency formed after the 2008 financial crisis, have been told to cease work after President Donald Trump appointed his Treasury Secretary to temporarily head it.
In an email sent from acting director Scott Bessent, employees were told to pause all work related to issuing rules, enforcing regulations on rules that are not yet effective but approved, conducting investigations, and providing communications to the public, according toThe Washington Post.
The directive is part of the administration’s agenda to review agency policies to ensure they align with Trump’s agenda.
It arrived just two days after Trump fired Rohit Chopra, the former CFPB director and a Biden appointee, and temporarily replaced him with Bessent, the Treasury Secretary.
It’s the latest bad omen for the CFPB, an independent agency that Congress created in 2010 as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act to protect consumers from unfair, deceptive or abusive financial practices.
It also provides consumers with personal financial tools and information so people can better manage their money and detect unfair practices.
But Republicans have historically opposed the CFPB, believing it is overly restrictive.
Project 2025, the conservative mandate created by The Heritage Foundation, proposes eliminating the CFPB.
Trump also moved to restrain to CFPB during his first term. His acting director then, congressman Mick Mulvaney, at one point requested no new money for the agency.
Elon Musk, the tech billionaire who has quickly ascended to a powerful position in the Trump administration, had called on lawmakers to “delete” the agency back in December.
Under Chopra’s leadership, the CFPB issued a number of regulations like limiting how much banks can charge for late and overdraft fees, set to take full effect in October, as well as removing medical debt from appearing on credit reports, a rule set to take effect in March.
The agency also filed several lawsuits against major banks, retailers and lenders. It is unclear if the Trump administration will continue pursuing that litigation though it appears unlikely.
Now, those who oppose the watchdog agency may get their way as it appears Bessent’s order is the first step in significantly reducing the CFPB’s authority.
Lindsey Johnson, the CEO and president of the Consumer Bankers Association, a trade organization that represents financial institutions, championed Bessent’s acting director position.
“On behalf of America’s leading retail banks, we’re pleased to see Secretary Bessent assume the role of CFPB director on an acting basis,” Johnson said in a statement.
The former director was known for his aggressive approach to enforcing consumer protection laws.
“There are a number of immediate actions Secretary Bessent can take to rescind the partisan policies the former CFPB Director has taken that adversely affect consumers, and we stand ready to work with him to reset the CFPB,” Johnson added.
The Independent has asked the CFPB for comment.
