Consumer Financial Protection Bureau

Subterms

    Latest story

    125 Shares140 Views

    Elon Musk Faces Questions About His Government Influence After Setbacks

    by

    A series of setbacks have raised questions about Elon Musk’s enduring influence in the White House.At the start of the new Trump administration, Elon Musk’s influence seemed to have no limits.He was in the Oval Office, one of his sons on his shoulders. He was meeting with heads of state. He was putting the United States Agency for International Development through the “wood chipper.” He gave a Fox News interview with President Trump.Over the past couple of weeks, though, Trump’s highest-profile governing partner has faced setbacks that raise questions about his enduring power and relationships in the White House.Some of my colleagues reported today that the acting commissioner of the Internal Revenue Service was being replaced after the Treasury secretary, Scott Bessent, complained that Musk had his preferred candidate installed in the role without Bessent’s blessing.It was only on Tuesday that Trump had appointed Musk’s choice, Gary Shapley, to run the agency temporarily. But since then, my colleagues reported, Bessent secured the president’s approval to send Musk’s pick packing.It’s the latest bump in the road during Musk’s three-month crash course in government. He has repeatedly rankled certain members of Trump’s cabinet by failing to coordinate with them. His overall progress with the Department of Government Efficiency has been slower than he imagined. He was practically admonished by Trump in public after a plan for him to receive a classified briefing on China was leaked and then scuttled.He suffered a high-profile political defeat after inserting himself into this month’s Wisconsin Supreme Court race. And despite his public opposition to Trump’s tariffs — and the trade adviser promoting them — he is not believed to have played a substantial role in persuading the president to change course.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    More stories

    • 100 Shares90 Views

      in Elections

      Judge Temporarily Halts Mass Firings at Consumer Bureau

      by

      One day after the Trump administration sent layoff notices to the vast majority of the Consumer Financial Protection Bureau’s workers, a federal judge temporarily blocked the action and ordered a hearing to determine whether the attempted mass firing violated an injunction she imposed last month.In a brief court session Friday morning, Judge Amy Berman Jackson of the Federal District Court in Washington pressed Justice Department lawyers for details about layoff notices sent Thursday to nearly 1,500 of the consumer bureau’s 1,700 workers. The messages told workers that they would lose access to their email accounts and work systems on Friday evening.Judge Jackson issued an oral order, followed by a written one, barring the government from carrying out that plan until at least April 28, when she plans to hold an evidentiary hearing on the issue. Her ruling came in a lawsuit brought by the consumer bureau’s staff union and other parties.“Once again, the court is confronted with evidence that gives rise to concerns that there will be no agency standing by the time it gets to consider the merits,” she said in her written order.Russell T. Vought, director of the White House budget office, became the consumer bureau’s acting director in early February and immediately began dismantling the agency — which cannot be closed without congressional action. Judge Jackson issued an injunction last month freezing those actions, saying that she wanted to make sure the agency existed long enough for courts to evaluate whether Mr. Vought’s actions were lawful.One week ago, a three-judge panel from the U.S. Court of Appeals for the District of Columbia Circuit pared back Judge Jackson’s order and said Trump officials could fire workers whom they decided — after a “particularized assessment” — were not needed to fulfill the agency’s legally mandated responsibilities.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 88 Shares127 Views

      in Elections

      Mass Layoffs Hit Consumer Financial Protection Bureau

      by

      The Trump administration sent layoff notices on Thursday to a large swath of employees at the Consumer Financial Protection Bureau, just days after a federal appeals court pared back an injunction that had prevented the agency’s leaders from carrying out plans to fire nearly all of the bureau’s workers.The full scope of the cuts was not immediately clear, but by late afternoon, hundreds of workers across all of the agency’s major divisions had received reduction-in-force notices. Fired employees were told they would lose access to their email accounts and the agency’s work systems on Friday evening.A legal filing Thursday evening by the consumer bureau’s staff union estimated that the terminations could hit as many as 1,500 of the bureau’s 1,700 employees. “Entire offices, including statutorily mandated ones, have or soon will be either eliminated or reduced to a single person,” the union said in its filing to the Federal District Court in Washington.Representatives of the consumer bureau did not respond to a request for comment.The bureau, which was created by Congress in 2011, monitors banks and other lenders. Since it was established, the watchdog agency has returned $21 billion to defrauded consumers through refunds and debt cancellation, according to government figures.On Wednesday, Mark Paoletta, the agency’s chief legal officer, sent an all-staff memo laying out new priorities. The bureau will significantly reduce its enforcement and compliance examination work, and “deprioritize” oversight of student loans, medical debt, digital payments and peer-to-peer lending, he wrote.Russell T. Vought, the White House budget office leader who is also the consumer bureau’s acting director, has frozen nearly all of the agency’s activity and sought to eliminate almost all of its staff.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 125 Shares193 Views

      in Elections

      Appeals Court Scales Back Freeze on Firing Consumer Bureau Employees

      by

      A federal appeals panel on Friday halted parts of a district court judge’s injunction blocking the Trump administration’s effort to dismantle the Consumer Financial Protection Bureau, allowing officials to move ahead with firing some agency employees.Russell T. Vought, the White House budget office director, was named the consumer bureau’s acting director in February and immediately began gutting the agency. He closed its headquarters and sought to terminate its lease, canceled contracts essential to the bureau’s operations, terminated hundreds of employees and sought to lay off nearly all of the rest.In a lawsuit brought by the bureau’s staff union and other parties, Judge Amy Berman Jackson of the Federal District Court in Washington froze those actions last month with an injunction to stop what she described as the administration’s “hurried effort to dismantle and disable the agency entirely.” The Justice Department appealed her ruling.A three-judge panel from the U.S. Court of Appeals for the District of Columbia Circuit unanimously rejected the government’s request to strike down Judge Jackson’s injunction, but it stayed parts of her ruling while the government’s appeal progresses. Specifically, the appeals court said the agency’s leaders can send a “reduction in force” notice — the process through which the government conducts layoffs — to employees they have determined are not necessary to carry out the agency’s “statutory duties.”When Congress created the consumer bureau in 2011, it assigned the watchdog agency dozens of tasks and ordered it to staff certain positions, including offices to aid student loan borrowers, military service members and older Americans. Those mandated obligations have been at the heart of the legal fight over the agency, because the bureau is required to fulfill those duties unless Congress acts.Mr. Vought’s team fired more than 200 probationary and fixed-term employees, only to reinstate most of them, with back pay, on Judge Jackson’s orders. The appeals court cleared the way for some to be fired again. Agency leaders may terminate employees after “an individualized assessment” of their necessity for carrying out the agency’s statutory tasks, the ruling said.But the court left much of Judge Jackson’s order intact, including her mandates that agency leaders shall not delete or destroy most of the bureau’s records and data, and that employees must be given access to either physical office space or the tools needed to work remotely. The consumer bureau’s Washington headquarters has remained shuttered and off limits to workers since Mr. Vought’s arrival.The appeals court expedited the government’s appeal and scheduled oral arguments for May 16. More

    • 163 Shares169 Views

      in Elections

      What We Know About the Trump Administration’s Cuts to the Federal Work Force

      by

      <!–> [!–> <!–> [!–> Confirmed cuts* At least 49,110 Employees who took buyouts About 75,000 More planned reductions At least 171,080 <!–> –> <!–> –> <!–> –><!–> [–><!–> –><!–> [!–> <!–> Confirmed reduction so far, by agency [–> U.S. Agency for International Development More than 99% Voice of America (U.S. Agency for Global Media) More […] More

    • 125 Shares179 Views

      in Elections

      Consumer Bureau Seeks to Undo Settlement and Repay Mortgage Lender

      by

      The Consumer Financial Protection Bureau wants to return a $105,000 penalty it collected last fall when it resolved a discrimination lawsuit.Under President Trump, the Consumer Financial Protection Bureau has dropped nearly a dozen enforcement cases brought during the Biden administration, ending lawsuits against banks and lenders for a variety of financial practices that the watchdog agency no longer considers illegal.But on Wednesday, the bureau went a step further: It is seeking to give back $105,000 that a mortgage lender paid to settle racial discrimination claims last fall.In an especially strange twist, the case — against Townstone Financial, a small Chicago-based lender — was brought during Mr. Trump’s first term by Kathleen Kraninger, the director he appointed to run the consumer bureau.Russell Vought, who became the agency’s acting director last month, said it had “used radical ‘equity’ arguments to tag Townstone as racist with zero evidence, and spent years persecuting and extorting them.”In its filing asking the U.S. District Court for the Northern District of Illinois to set aside the settlement it approved in November, the bureau said it had found “significant undisclosed problems” in its handling of the lawsuit, which the new leadership called an “unmerited” complaint that violated the defendants’ First Amendment free-speech rights.The case began in 2020 when the consumer bureau accused Townstone of redlining and breaking fair-lending laws by discouraging residents living in majority-Black neighborhoods from applying for its housing loans. It homed in on comments made during the company’s radio show and podcast, “The Townstone Financial Show,” saying they were intended to rebuff Black borrowers or those seeking to buy homes in certain neighborhoods.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 163 Shares179 Views

      in Elections

      Buying a Home? Without the CFPB, You Need to Be Your Own Watchdog.

      by

      The C.F.P.B. had kept a close eye on mortgage lenders. But with the bureau hobbled, consumers should take several steps, starting with shopping for the best mortgage rates.House prices are stubbornly high, and mortgage rates remain substantially above their prepandemic level. Now, with the spring home buying season looming, shoppers have a new worry: A major federal consumer watchdog has been hobbled.Without the Consumer Financial Protection Bureau, the agency responsible for overseeing most aspects of the home buying process, consumer advocates say home buyers need to be their own watchdogs.“Now, when you buy a house, you are much more vulnerable to being misled,” said Sharon Cornelissen, housing director with the Consumer Federation of America. “It’s important to be on guard, because guardrails are being taken away.”Buying a home is the biggest financial decision most Americans will make in their lives. The typical home price is about $397,000, according to the National Association of Realtors, but prices are far higher in some parts of the country. In several California counties, for instance, the median price at the end of last year was over $1.5 million, with monthly mortgage payments over $8,000.What role has the consumer bureau played in home buying?The consumer bureau was created after the financial and housing crisis in 2007-8 to streamline oversight of lenders and financial companies serving consumers. Over the years, the bureau has moved to ease the mortgage shopping process by offering simplified forms and educational tools, and has taken action against an array of banks and lenders. In 2022, for instance, the bureau ordered Wells Fargo to pay $3.7 billion for mishandling a variety of customer accounts, including improperly denying thousands of requests for mortgage loan modifications that in some cases led borrowers to lose their homes to “wrongful” foreclosures.On Jan. 17, in the final days of the Biden administration, the bureau reached a settlement with Draper and Kramer Mortgage Corporation for discouraging borrowers from applying for loans to buy homes in majority Black and Hispanic neighborhoods in Chicago and Boston. In an email, the lender’s lawyers said Draper and Kramer “considers the matter closed and denies” the bureau’s claims, but chose to settle in part to avoid “protracted legal costs.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 125 Shares99 Views

      in Elections

      How Consumers Can Protect Themselves With the CFPB on Pause

      by

      Rules on bank and credit card fees, medical debt and payment apps are in limbo. One thing you can do is carefully check your financial statements, one expert says.With the government seemingly stepping back from regulatory duties, consumers may have to act as their own financial watchdogs.The Consumer Financial Protection Bureau, the independent federal agency created after the 2008 financial crisis to shield people from fraud and abuse by lenders and financial firms, has been muzzled, at least temporarily.“Everything is on pause right now,” said Delicia Hand, senior director of digital marketplace with Consumer Reports. “So it’s back on consumers to be extra diligent.” Ms. Hand previously spent nearly a decade in a variety of roles at the Consumer Financial Protection Bureau, including overseeing complaints and consumer education, before departing in 2022.In early February, the Trump administration ordered the consumer bureau to mostly cease operations. It closed its Washington headquarters, fired some employees and put most of the rest of the staff on administrative leave, and opted not to seek funding for its activities. Several lawsuits are challenging the administration’s actions. On Feb. 14, a federal judge in Washington ordered the bureau to halt firing workers and not to delete data, pending a hearing scheduled for Monday.The administration, however, has already dialed back enforcement — dropping, for instance, a suit accusing an online lender of promoting free loans that actually carried high interest rates. On Thursday, the bureau dismissed a lawsuit that it had brought in January accusing Capital One of cheating customers out of some $2 billion in interest.It’s a stark change for an agency that had been energetic in adopting rules and filing lawsuits aimed at aiding consumers. Under the Biden administration, the bureau moved to reduce or eliminate various fees charged by banks and other financial firms and to remove unpaid medical debt from credit reports, and it fined a major credit reporting bureau for misleading consumers about credit freezes.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 113 Shares189 Views

      in Elections

      Elon Musk’s DOGE Overhauls the Consumer Financial Protection Bureau

      by

      The upheaval at the Consumer Financial Protection Bureau offers a glimpse into the playbook that Elon Musk and other Trump allies seem to be writing in real time.At first, things at the Consumer Financial Protection Bureau seemed eerily calm.The Biden-appointed director of the agency, which was created after the 2009 financial crisis to regulate banks and other lenders, was not immediately fired by President Trump. The lawyers at the agency continued with their business. In late January, they said a remittance company was misleading customers about its fees and ordered it to pay a $2.5 million fine.And then the chaos began.On the morning of Feb. 1 — a Saturday — the director was dismissed, as my colleague Stacy Cowley, who has followed every twist and turn of this story, reported. By the next Friday, Feb. 7, Russell Vought, the director of the Office of Management and Budget and a close Trump adviser, was installed as the C.F.P.B.’s acting director. Representatives from the new Department of Government Efficiency, which is led by Elon Musk and is not a formal executive-branch department, arrived and got access to the computer systems.Musk posted a message on his X account: “CFPB RIP.”Musk’s cost-cutting team has been operating with little transparency. Members don’t announce what they’re doing, who’s doing it or how. So it’s worth understanding what’s happening at the C.F.P.B., both because of the direct impact on the agency’s work and because it’s a glimpse into the playbook that Musk and his team, working with Trump officials like Vought, seem to be writing in real time.The panic strategyRussell Vought on Capitol Hill this week.Haiyun Jiang for The New York TimesLast Saturday, Vought ordered the nearly 1,700 people who work at the agency to stop much of their work. The edict prompted widespread fear and deep concern about the agency’s future. People worried that their work phones and computers were being tracked. One employee I spoke with, who asked not to be identified out of fear of retaliation, felt panic, and then remembered that Vought had spoken in 2023 of his intent to demoralize workers in the civil service.“We want the bureaucrats to be traumatically affected,” Vought had said.Some employees tried to plug away at their jobs. Two of them told me that after they saw Musk’s post on X about his team’s preference for working on weekends, when federal offices are closed, they decided they would do the same. On Saturday, they saw three employees from Musk’s team in the bureau’s basement, working in conference rooms with the windows papered over.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More