The Consumer Financial Protection Bureau (CFPB) is facing a severe crisis as dozens of critical contracts have been canceled or are set to expire, according to an affidavit filed in federal court last week. The agency, which protects consumers from financial fraud, has been significantly gutted by the White House over the past two weeks.
A contracting officer at the CFPB, identified only as Charlie Doe, claims that the agency is “shut down” and most employees have stopped work. This comes as part of a lawsuit filed by the National Treasury Employees Union against the CFPB acting director, Russell Vought.
The plaintiffs were able to pause contract terminations, but this agreement expires today when another hearing in the case is scheduled. Doe warns that if there is no court order to continue the termination process, many contracts will be fully terminated within the week.
The canceled contracts include those for training examiners, handling cybersecurity, and serving as expert witnesses in litigation. The CFPB also maintains a consumer complaint database, where members of the public can register issues they’re facing with companies.
However, some contracts related to maintaining this database remain canceled, leading to a backlog of thousands of complaints that have not been forwarded to financial institutions. This has left many concerned that consumer advocates will lose a key tool in protecting them from financial fraud.
The CFPB’s efforts to cancel these contracts are seen as a significant blow to the agency and its ability to function effectively. Consumer advocates and former CFPB staffers express alarm at the sidelining of the agency, which they claim would make it easier for bad actors to flourish.
Source: https://www.axios.com/2025/03/03/cfpb-doge-musk-trump