Consumer Financial Protection Bureau halts activity | What this means for you

Concern is mounting as a federal agency dedicated to protecting consumers remains shut down. The abrupt week-long closure comes after the acting director appointed by President Donald Trump ordered employees to stop nearly all of their work.

The watchdog agency we're talking about is the CFPB, the Consumer Financial Protection Bureau. As its name indicates, its job is to fight financial abuse and fraud on behalf of American consumers. It's done that for nearly two decades by putting into place new rules and penalizing big banks and other companies that break them. But now the fate of the entire agency looks bleak.

"It's recovered over $20 billion in relief for 195 million consumers in the United States, and it's handled directly about 5.6 million complaints from consumers across the country," said Chuck Bell of Consumer Reports.

The CFPB has taken action to end:

• Junk fees
• Bad mortgages
• Illegal high-interest loans

It's Increase protection of consumer data and privacy and removed medical debt from credit reports.

"It was formed in the aftermath of the serious 2008 financial crisis, and it was determined there was a need for a strong federal agency to make sure that financial products are affordable and safe and don't blow up in the face of the people that are using them," noted Bell.

But the CFPB website on Tuesday said, "page not found," and its X account has been deleted.

"Some members of Elon Musk's Doge team, that is visiting a number of government agencies, entered the CFPB. And at the end of the week, he tweeted, 'CFPB rest in peace.'"

Russell Vought, President Trump's newly appointed CFPB acting director, ordered employees to "cease all supervision and examination activity," building on an order from the Treasury Secretary that staff must suspend or stop issuing rules.

"So it's a highly concerning situation for consumers, and I would say it will create a lot of uncertainty for the financial sector itself," added Bell.

A number of rules issued by the CFPB are in jeopardy if the agency isn't able to defend them. They include rules to lower overdraft and credit card late fees, which is poised to save Americans an estimated additional $9 billion.

But the White House says, "The CFPB has long functioned as another woke, weaponized arm of the bureaucracy," claiming the agency engaged in "classic government overreach."

So what can consumers do?

Bell says to contact your Congress members and ask that CFPB be saved, also, you can still file a complaint with the agency. Bell recommends consumers continue to do that as well.

While the home page says the website can't be found, the other tabs appear to still be working.