The Trump administration’s plan to dismantle the Consumer Financial Protection Bureau (CFPB) has raised concerns among consumer advocates, who warn that its shutdown could leave people vulnerable to scams and excessive fees.
A federal judge, U.S. District Judge Amy Berman Jackson, will hold a hearing on March 10 to determine the agency’s future. The CFPB is responsible for protecting consumers from predatory financial practices, including high-interest rates and excessive fees.
If the agency shuts down, people may lose access to key resources, such as complaints and dispute resolution services. However, experts say that other alternatives are available, including the Better Business Bureau, AARP Fraud Network, and private sector companies that can advocate on behalf of consumers.
Personal finance expert Kimberly Palmer notes that while these alternatives exist, a shutdown of the CFPB could ultimately lead to increased costs for consumers. “The CFPB is advocating for consumers and getting back their money when things go wrong,” she said. “If no one’s following up on those problems, it means consumers could be paying more in fees and interest rates.”
Source: https://www.kcrg.com/2025/03/06/how-shutdown-consumer-financial-protection-bureau-could-impact-you