EXPLAINER: Trump & Musk Gutted the CFPB to Let Predatory Lenders Run Wild—What You Need to Know & What to Do Next

What Just Happened?

In a shocking escalation of his administration's assault on federal oversight, President Trump has installed Russell Vought as Acting Director of the Consumer Financial Protection Bureau (CFPB) and handed him a mandate to effectively shut down the agency.

On February 7, 2025, Vought issued a sweeping directive to all CFPB staff that ordered the agency to:

Cease all supervision and examination activity of banks, lenders, and credit card companies.
Suspend the implementation of any new rules or guidance, leaving key protections in limbo.
Halt all stakeholder engagement, effectively silencing consumer advocates and watchdogs.
Stop all ongoing and pending investigations, allowing financial predators to act with impunity.
End the publication of compliance bulletins and research papers, further eroding public accountability.

This directive follows a calculated series of steps by Trump to neutralize the CFPB. After firing former Director Rohit Chopra on February 1, Treasury Secretary Scott Bessent briefly took over before handing the reins to Vought. Now, under Vought’s leadership, the CFPB has been transformed from a watchdog for consumers into a toothless shell designed to serve the interests of billionaires like Elon Musk and greedy corporations.

This isn’t just bad governance—it’s part of a deliberate and unconstitutional coup against the agencies that exist to protect people orchestrated by Trump, Elon Musk, and the billionaires they serve. By neutering the CFPB, they are delivering an enormous gift to Wall Street and payday lenders while leaving everyday Americans defenseless.

Why This Is Illegal

The CFPB was established under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 with a clear mandate:

Supervise financial institutions to ensure compliance with federal laws.
Investigate and penalize misconduct by financial entities.
Engage with stakeholders to advocate for fair and transparent practices.

By ordering the agency to halt these core functions, Vought’s directive blatantly violates federal law. The Dodd-Frank Act does not grant the CFPB Director—or the President—the authority to unilaterally suspend the agency’s operations.

Moreover, the Federal Vacancies Reform Act (FVRA), which Trump used to justify Vought’s appointment, allows temporary appointments but does not permit sweeping actions that undermine the agency’s statutory obligations. This directive sets a dangerous precedent for dismantling government agencies by executive fiat.

What is the CFPB?

The Consumer Financial Protection Bureau is a critical federal agency created in the aftermath of the 2008 financial crisis. Its mission is to protect consumers from predatory practices in industries like mortgage lending, credit cards, payday loans, and student loans. The CFPB has returned more than $16 billion to defrauded consumers since its creation and has acted as a watchdog over the multi-trillion-dollar financial services industry.

Without the CFPB, Americans are left vulnerable to the very abuses that caused the financial collapse: deceptive lending, hidden fees, and outright fraud.

What does this mean in real terms?

Why This Matters

This attack on the CFPB has immediate and devastating consequences:

Predatory practices will explode: Payday lenders, banks, and credit card companies can now act with impunity.
No one is watching: The $16 trillion consumer debt market is now essentially unregulated.
Routine financial transactions are disrupted: Regular financial tasks like mortgage underwriting rely on a fully functional CFPB - now, all of that is thrown into uncertainty.
Working families are defenseless: The safety net that protected Americans from financial abuse has been dismantled.

This is not just deregulation—it is deliberate sabotage designed to enrich billionaires and corporations at the expense of everyday Americans.

How This Fits Into the Trump-Musk Coup

This move is part of Trump and Musk’s broader plan to dismantle federal oversight, consolidate power, and enrich their billionaire allies. They want to strip agencies like the CFPB, the EPA, and others of their ability to enforce the law—leaving corporations free to exploit, pollute, and profit without accountability.

At the same time, Trump loyalist JD Vance defended the move on social media, claiming that judges and Congress have no authority to challenge these actions. This is authoritarianism disguised as governance, and it poses a direct threat to democracy and the rule of law.

Force Republicans on Record

Republicans want to quietly let Kennedy Center Chairman Donald Trump and President Elon Musk hand Wall Street a free pass, but we can make sure they have to answer for it. Every single GOP lawmaker should be forced to go on the record about whether they support gutting consumer protections.

CALL THEIR OFFICES: Demand answers from your Republican Representative and Senators. Flood their phones with these questions. Ask for an official statement. If they dodge, call again.
VISIT THEIR DISTRICT OFFICES: Walk in and ask to speak with their staff. Bring friends. Take notes (and video!) of their answers.
FIND THEM IN PUBLIC: Congress is in recess (back at home) from Friday, February 14th through Friday, February 21st. Check their schedules, show up at town halls, press conferences, and public events. Ask them some of the questions directly—on camera.
BIRDDOG THEM: If they’re avoiding events, catch them where they are. Public appearances, airports, donor events—wherever they go that you can find, bring the questions and get it on camera.
TAG THEM ON SOCIAL MEDIA: Post your questions. Demand an answer. Use their official handles. If they ignore you, make it clear they’re hiding.

Make it clear: Republicans can either stand with their constituents or with financial predators. If they dodge, avoid, or refuse to answer, make that the story—they are too scared to admit they’ve sided with billionaires over working people. Get the receipts. Get the answers. Get them on the record.

The Questions Every Republican Must Answer

Republicans don’t get to dodge this. The CFPB was the only thing standing between their constituents and financial predators—now it’s gone, thanks to Trump and Musk. Every single GOP lawmaker must go on the record: Do they stand with working people, or with the billionaires looting the country?

Ask them directly. Demand an answer. If they refuse, make that the story. Here’s what they need to answer.

Do you believe Americans deserve protection from predatory lenders, or do you think corporations should have free rein to exploit consumers without oversight?
If no one is monitoring banks and lenders, who do you think will stop them from scamming working families? Or do you just trust Wall Street to police itself?
Do you support gutting the CFPB even if it means leaving $16 trillion in consumer debt markets completely unregulated? Who benefits from that—your constituents or your billionaire donors?
If protecting consumers from fraud and abuse is no longer a priority, what exactly do you think the government should be doing for the people?
Why is your party obsessed with dismantling agencies that serve everyday Americans while handing corporations a blank check to do whatever they want?
Do you think it’s acceptable for Trump and Musk to unilaterally decide which government agencies should exist? Or does Congress have a role in protecting the American people?
What do you say to the millions of Americans who will lose their homes, savings, or financial security because of this reckless decision? Do they not matter to you?
If the CFPB was good enough to recover $16 billion for consumers over the past decade, why is it suddenly bad now? What changed—other than Wall Street’s wish list?
You claim to be the party of "law and order." So why are you letting Trump and Vought dismantle the rules that keep financial institutions in check?
If your constituents end up victimized by a scam lender, will you be there to help them? Or will you just tell them they should’ve read the fine print?
Do you think billionaires like Elon Musk need more help from the government, or is it time to stand up for the working families who are being left defenseless?
Why is it that every time Trump and his allies say they’re "draining the swamp," it seems like they’re just draining protections for ordinary Americans?
If you’re so confident that gutting the CFPB is good for the country, will you publicly promise not to take campaign contributions from the financial industry?
How does it feel to be on the same side as payday lenders and predatory banks, while everyday Americans get left in the dust?
Do you think financial scams and abuse will magically stop now that the CFPB is out of the picture? If not, why are you okay with letting it happen?
Do you believe the government should have any role in protecting consumers, or is your vision of America one where corporations can do whatever they want?
How can you justify a directive that benefits Wall Street billionaires while throwing Main Street under the bus?
Why is your party so laser-focused on tearing down protections for working people while doing nothing to stop corporate greed?
Do you think Americans voted for a government that works for them, or one that bows to Trump and Musk’s billionaire coup?

Demand Accountability from Democrats in Congress

Democrats in the House of Representatives have leverage—if they use it (you can read more in our explainer here). Call them and make the following demands:

USE THEIR LEVERAGE IN THE BUDGET FIGHT. Specifically, VOTE NO on any budget that (a) includes extremist riders that cut critical programs; (b) attacks abortion rights, LGBTQ+ protections, or immigrant communities; (c) includes GOP giveaways to billionaire donors; and (d) does not include ironclad, enforceable protections to stop Trump, Musk, and Vought from unilaterally diverting funds or gutting vital programs.
PROCEDURAL HARDBALL, COMMITTEE FIGHTS, AND INVESTIGATIONS. Democrats in the House must use procedural hardball, committee fights, and investigations to delay and defy the Trump-Musk coup and expose the sabotage. Forcing roll call votes on everything, using motions to recommit to force Republicans to take difficult votes, and more (you can read more about this in our explainer here). Specifically, this week, every Democrat in Congress should publicly call for subpoenas for Russell Vought, Elon Musk, and Trump officials to testify under oath about what’s going on at CFPB.
PUSH FOR LEGISLATION THAT STRENGTHENS THE CFPB'S INDEPENDENCE AND PROTECTS IT FROM POLITICAL SABOTAGE. A specific bill has not yet taken shape, but we'll let you know when there’s a vehicle.

This Is Bigger Than the CFPB

This attack on the CFPB is just the beginning. If Trump and Musk succeed here, no agency is safe. They’ve declared war on the protections that safeguard ordinary Americans, and they won’t stop until every safeguard is dismantled.

Congress must act now—not just to save the CFPB but to stop this coup against democracy and the rule of law. This fight is about more than consumer protections—it’s about whether our government works for the people or for the billionaires—like Elon Musk—trying to take it over.

TAKE ACTION NOW

Whether your Representative in the House is a Democrat or Republican, we've got something for you to do right now to fight back.

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