US District Judge Amy Berman Jackson has ordered the Trump administration to pause layoffs and funding cuts at the Consumer Financial Protection Bureau (CFPB), a federal agency responsible for protecting consumers from fraud. The decision comes after the agency’s new director, Russell Vought, halted its work and shut down its doors.
The CFPB was formed in 2008 to protect consumers from financial abuse. However, Trump officials have targeted the agency for shutdown, arguing that its funding is “excessive.” The agency has previously implemented measures to help consumers, including capping credit card late fees at $8 and bank overdraft fees at $5.
The judge’s order prohibits the Trump administration from terminating workers, deleting data, or raiding agency coffers. It also calls for the preservation of CFPB records and prevents further firings until at least March 3.
The CFPB has been a subject of controversy since its inception, with leaders from the financial industry criticizing its actions as “unaccountable” and “excessive.” The agency’s critics argue that it goes beyond Congress’ mandate to protect consumers. On the other hand, supporters argue that it plays a crucial role in holding large banks accountable for following consumer protection rules.
The recent developments have sparked a heated debate over the CFPB’s effectiveness and the Trump administration’s motives. Critics of the agency point out that its actions often target the interests of major financial institutions, while supporters argue that it provides essential protections for consumers. The future of the CFPB and its initiatives remains uncertain as lawmakers consider legislation to overturn the $5 cap on overdraft fees.
Source: https://eu.usatoday.com/story/money/2025/02/16/layoffs-halted-cfpb-consumer-watchdog-musk-trump/78871464007