Russell Vought Orders Pause On All CFPB Activity, Critics Say This Gives Corporations 'The Green Light To Scam Families'

The Consumer Financial Protection Bureau–an agency that oversees financial regulations in the U.S. States–has come to a standstill under the leadership of its new acting head, Russell Vought. Vought issued a series of directives Saturday, ordering CFPB employees to pause all investigations, enforcement actions, and regulatory work. And it is facing severe backlash from critics. 

Vought was recently confirmed as director of the Office of Management and Budget and will also be overseeing the CFPB. According to an internal email obtained by NBC News, Vought instructed employees to “cease all supervision and examination activity,” “cease all stakeholder engagement,” and hold off on issuing new rules or guidance. Vought also said that the CFPB would not be drawing its next round of funding, claiming that the CFPB's current $711.6 million budget is excessive. 

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As part of these actions, the CFPB's headquarters have been temporarily closed, and public communications from the agency have been suspended, leaving consumers with limited insight into ongoing regulatory work. 

Vought's directives have brought sharp criticism from Democratic lawmakers, who argue that shutting down the CFPB undermines financial protections for Americans. U.S. Sen. Elizabeth Warren (D-MA), who played a key role in creating the CFPB after the 2008 financial crisis, expressed her concerns on X: 

"Vought is giving big banks and giant corporations the green light to scam families. The Consumer Financial Protection Bureau has returned over $21 billion to families cheated by Wall Street. Republicans have failed to gut it in Congress and in the courts. They will fail again," she said. 

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Consumer protection groups have echoed Warren's concerns. Dennis Kelleher, head of the financial watchdog group Better Markets, in a statement described Vought's order as "another slap in the face for all Americans who depend on basic financial products and services." 

The National Treasury Employees Union, which represents CFPB workers, has taken legal action to challenge Vought's directives. The union argues that suspending the agency's operations violates congressional authority over its funding and mandates. Additionally, the union filed a separate lawsuit that seeks to prevent members of the Department of Government Efficiency—an White House advisory group led by Elon Musk—from accessing CFPB personnel records.

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Musk, who has taken an active role in the Trump administration's efforts to restructure federal agencies, has made it clear that he opposes the CFPB. In a recent post on X, he wrote "CFPB RIP" accompanied by a tombstone emoji. According to media reports, DOGE members have been granted administrative-level access to CFPB's internal systems, raising concerns about conflicts of interest given Musk's ambitions to expand into financial services.

Critics argue that these changes could leave consumers vulnerable to predatory financial practices. A CFPB employee, speaking anonymously to NBC News, warned that the bureau's examiners play a crucial role in preventing financial abuse. 

“They're pulling hundreds of examiners out of the field — the people who make sure your grandmother isn't getting ripped off by scammers and your kid isn't being deceived by predatory student lenders,” the employee said.

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The move to halt CFPB operations is part of a broader push by the Trump administration to consolidate federal agencies and reduce their regulatory reach. Treasury Secretary Scott Bessent, who briefly led the CFPB before Vought's appointment, had already begun scaling back the bureau's authority. Meanwhile, similar measures have been taken against other agencies, such as the U.S. Agency for International Development, where funding and personnel cuts have been met with legal challenges.

For now, the future of the CFPB remains uncertain. While Vought's actions face legal challenges, the immediate effects are clear: the agency's regulatory functions are frozen, and consumer protection enforcement has been put on hold. As the situation develops, financial industry leaders, policymakers, and consumer advocates will be watching closely to see what comes next.

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