The Consumer Financial Protection Board (CFPB), which protects Americans from unfair financial practices, is facing a new threat due to the White House’s plan to shut it down. Lawmakers and advocacy groups are warning veterans and military families about potential financial scams that could target them amid this move.
Founded in 2011, the CFPB received nearly 100,000 consumer complaints every month from service members, veterans, and their families in 2024. The agency has helped return over $175 million to veterans and military dependents in recent years.
However, the White House claims the CFPB is no longer needed and that its work can be picked up by other agencies. But lawmakers disagree, arguing that financial scams are particularly problematic for military families, as they can affect individuals’ security clearance status and undermine readiness.
Senator Tammy Duckworth has called for more education on financial literacy among military personnel, saying it’s crucial to prevent these types of scams from targeting veterans and their families. Advocacy groups have sued to prevent the closure of the CFPB, but a decision remains unclear.
The White House officials argue that the federal government is too overstaffed and unsustainable, but critics say this move will leave vulnerable populations without protection. As one veteran noted, financial literacy should be included in military training to prepare new recruits for potential scams.
Source: https://www.militarytimes.com/news/pentagon-congress/2025/02/13/watchdog-agencys-closure-could-lead-to-more-military-financial-scams