The Consumer Financial Protection Bureau (CFPB) is set to be drastically downsized, with the “vast majority” of employees expected to lose their jobs, according to sworn declarations from current and former agency employees. The Department of Government Efficiency (DOGE) has orchestrated the layoffs, which are part of a broader dismantling of the financial services watchdog.
The CFPB is responsible for protecting consumers from misleading financial practices and ensuring companies comply with regulations. However, under DOGE’s plan, it appears that consumer protection work and data will be transferred to other agencies or lost altogether.
Seven current and five former employees have submitted declarations as part of a National Treasury Employees Union case against Office of Management and Budget director Russell Vought, who is acting as the CFPB’s director. The union seeks to halt the agency’s dismantling, which has been ongoing since 2023. During this time, the CFPB has returned $17.5 billion to consumers.
The employees describe a hasty firing process with little consideration for how consumer protection issues and data would be handled once the agency is gutted. The stop-work order at the agency has prevented staffers from conducting necessary work, including maintaining computer system security.
One employee described a three-phase approach: first, firing probationary employees; second, eliminating whole offices, divisions, and units; and third, terminating most remaining employees within 60-90 days. The speed of the layoffs necessitated bypassing ordinary procedures and rules, according to an employee.
The CFPB’s contracts were also terminated in a rush, with termination notices issued between February 11th and 14th, despite not including data preservation notices. This has raised concerns about where agency data might end up.
A court order temporarily halted further firings, but it remains unclear what will happen to the CFPB’s consumer protection work and data.
Source: https://www.theverge.com/news/621757/cfpb-doge-worker-layoffs-sworn-declaration