NEW YORK — President Donald Trump has criticized the Consumer Financial Protection Bureau (CFPB), labeling it a source of “waste, fraud and abuse” designed solely to “destroy people” with its workforce referred to as a “vicious group.” Yet, for individuals like Jonathon Booth, the CFPB represents an agency that successfully assisted him in reclaiming $17 that was unfairly charged to him.
The CFPB is currently at a standstill, as the White House has halted its operations, shut down its headquarters, and laid off numerous employees. However, many individuals who have sought help from the agency describe it as a valuable advocate against exploitative business practices. Booth, a 34-year-old professor living in Boulder, Colorado, lodged a complaint with the CFPB last October when his credit card provider refused to erase an incorrect late fee. He insists that without oversight, companies are more likely to exploit legal boundaries for profit. Just weeks after he reached out, Booth’s issue was resolved, and his account balance was rectified.
Despite Trump and his cost-cutting advisor Elon Musk’s disparagement of the CFPB, supporters share tales of the agency’s successes. Established in response to the 2008 financial crisis through the Dodd–Frank Wall Street Reform and Consumer Protection Act, the CFPB has managed over 7.7 million complaints and returned nearly $20 billion to consumers in its over 13 years of operation.
Nurit Baytch, 47, from Cambridge, Massachusetts, recently contacted the CFPB regarding a dispute over a mold removal project in her basement. After a worker accidentally damaged her belongings, she sought redress from both the contractor and Venmo, the payment service, but received no help. To her surprise, after filing a complaint with the CFPB, she received a $100 refund within two weeks. Baytch now views the agency as a force for good, arguing that it primarily serves the needs of consumers rather than big corporations.
Originally conceived by Elizabeth Warren prior to her Senate election, the CFPB was crafted to protect U.S. citizens from predatory practices by financial firms. The agency has frequently encountered animosity from the financial sector as well as Republican lawmakers, many of whom consider it an overreaching institution. This sentiment was echoed in a conservative document known as Project 2025 that accused the CFPB of functioning as a tool for left-leaning organizations.
The CFPB has faced unprecedented challenges since Trump re-entered the political arena. The agency was branded “woke” and “weaponized,” and the White House directed it to cease most of its operations. Recently, a judge ruled that the CFPB must suspend its plans for mass layoffs and budget cuts until at least March 3. Despite these legal obstacles, the agency’s future remains uncertain.
Among those affected by the agency’s current struggles is Barbara Seese, a retired teacher from Phoenix, who has seen the positive side of the CFPB first-hand. A decade ago, debt collectors were relentless in pursuing payments for nonexistent medical bills attributed to her 95-year-old father. While her pleas to various state attorneys general went unanswered, filing a complaint with the CFPB brought immediate results, halting the harassment within a day.
Once consumers file a complaint with the CFPB, it undergoes a review process, with responses expected from large financial companies within 15 days. Often, just the involvement of the CFPB is sufficient to prompt businesses to rectify issues to prevent negative feedback. In 2023, about 40% of matters were resolved without financial compensation, while only 1.5% resulted in consumer payments.
Ruth Susswein, a proponent of the CFPB and consumer protection director at a nonprofit organization, acknowledges a need for improved resolution rates but stresses that the agency provides significant benefits through its processes and oversight.
Though the CFPB has faced fierce opposition, it shows signs of resilience. Earlier legislative efforts to abolish the agency were unsuccessful, and a Supreme Court case seeking to undermine its funding was dismissed by a 7-2 ruling. Recent initiatives included the imposition of caps on bank overdraft fees and the exclusion of medical debt from credit reports. However, these achievements are now at risk.
Musk has acknowledged the agency’s role in accomplishing some positive outcomes but maintains that it still needs significant cuts. Last year, the CFPB employed roughly 1,700 individuals and operated on a budget of $729 million.
In spite of Trump’s criticisms and claims of government waste, the attack on the CFPB has alarmed many, including his supporters. Darren Cobb, a retired auto dealership manager from Las Vegas, experienced significant challenges dealing with his mortgage company when they failed to pay local taxes. After receiving no resolution through multiple letters and calls, he turned to the CFPB and witnessed a rapid change in his mortgage company’s responsiveness. Within two weeks, his issues were settled, ultimately receiving a refund after the agency got involved.
Cobb, who voted for Trump, cautioned against rash decisions regarding the CFPB. He emphasizes the importance of understanding the consequences of undermining such a critical consumer protection agency, stating, “You just can’t get scissors out and start cutting without understanding what you’re cutting.”
