Impacts of Trump's Actions on CFPB: How Americans Are Preparing for Change

NEW YORK (AP) — President Donald Trump has labeled the Consumer Financial Protection Bureau (CFPB) as a hub of “waste, fraud, and abuse,” claiming it exists solely to “destroy people” while characterizing its workforce as a “vicious group.”

However, for individuals such as Jonathon Booth, the CFPB represents an agency that successfully helped him recover $17.

The CFPB is currently facing opposition from the White House, which has suspended its operations, closed its offices, and terminated numerous employees. Nonetheless, many who have sought assistance from this agency view it as a crucial advocate against exploitative businesses.

“This embodies consumer protection—providing support for issues that are too small for litigation,” remarks Booth, a 34-year-old professor from Boulder, Colorado, who lodged a complaint with the CFPB in October when his credit card provider refused to waive an erroneous late fee. “Without oversight, companies might stretch the rules to maximize profits.”

Shortly after Booth reached out to the CFPB, his complaint was resolved, and his account was credited accordingly.

Despite the criticism from Trump and budget-slasher Elon Musk, supporters of the CFPB share success stories showcasing its beneficial impact. Established under the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB has handled over 7.7 million consumer complaints and returned nearly $20 billion to consumers since its inception in 2011.

Nurit Baytch, a 47-year-old resident of Cambridge, Massachusetts, recently contacted the CFPB regarding a mold removal issue in her basement. After a worker accidentally spilled hydrogen peroxide on her belongings, leaving her photos and electronics damaged, neither the contractor nor the payment service Venmo provided assistance. Baytch reached out to the CFPB, not expecting much, but was pleasantly surprised to receive a $100 refund within two weeks.

Baytch now considers the agency an “unqualified good.”

“The only ones hurt by it are large corporations trying to take advantage of consumers,” she argues, describing Trump’s campaign against the agency as “dishonest.” “Any informed voter recognizes its positive contributions.”

Created in response to the 2008 financial crisis and the subsequent Great Recession, the CFPB aims to shield consumers from predatory practices by credit card companies, mortgage lenders, and debt collectors. The agency, envisioned by Massachusetts Senator Elizabeth Warren before her election, has frequently drawn ire from the financial sector and various Republican legislators.

Conservative critics have long accused the CFPB of overstepping its mandate, a sentiment echoed in the far-right agenda known as Project 2025, which derogatorily referred to the bureau as a “shakedown mechanism” for “leftist nonprofits.”

However, the scrutiny faced by the CFPB intensified upon Trump’s return to Washington. The White House has labeled the agency as “woke” and “weaponized,” subsequently instructing it to cease most of its operations.

A judge recently ruled that potential mass layoffs and data deletions planned for the agency must be paused until at least March 3. Nonetheless, the CFPB’s future remains uncertain.

This situation is disconcerting for individuals like Barbara Seese, a 71-year-old retired teacher in Phoenix, who believes the CFPB has been mischaracterized by Trump.

“It’s a hero,” she praises the agency.

Years ago, Seese was inundated with calls from debt collectors claiming her 95-year-old father’s accounts were in arrears. Despite her attempts to verify the bills, the collectors provided little information. It wasn’t until she filed a complaint with the CFPB that the harassment ceased. Within a day, the calls stopped, and the debt was confirmed to belong to someone else with the same name.

“They were incredibly helpful, informative, and professional. I truly felt secure and supported,” Seese recalls.

Once a complaint is submitted to the CFPB, it undergoes staff review, initiating a timeline for resolution. If a case falls outside the agency’s responsibilities, they will direct the consumer to an appropriate regulator or local authority, such as their state attorney general. For cases under its jurisdiction involving significant financial entities, the CFPB routes complaints to the concerned company, which generally has 15 days to respond.

In many instances, just the involvement of the CFPB encourages companies to rapidly address the complaint to avoid negative publicity. In other cases, the agency may require deeper investigations. However, some firms resist, insisting they are justified.

The CFPB operates on two key levels: addressing individual complaints and analyzing overall trends to inform broader regulatory measures and legal actions. The results of the former can influence actions in the latter.

In 2023, around 40% of complaints were resolved with some form of non-monetary relief, while a mere 1.5% resulted in consumer payments.

“I would like to see a higher resolution rate for complaints, but no agency is without flaws,” expresses Ruth Susswein, Consumer Action’s director of consumer protection and a strong proponent of the CFPB. “Resolution is certainly a goal, but it’s not the only advantage of this system.”

Despite the intense scrutiny directed at the CFPB, it has shown resilience. Efforts to abolish the agency during the last Congress fell flat, and a landmark Supreme Court case aimed at altering the agency’s funding structure failed in a 7-2 vote last year.

The bureau has continued its work, including measures such as capping bank overdraft fees and removing medical debt from credit reports. Yet, the viability of such initiatives is now in jeopardy.

Musk acknowledged that while the agency staff did “some good things,” they still need significant changes. The CFPB previously employed around 1,700 people and had a fiscal budget of $729 million last year.

Although many defend Trump’s decisions and agree that there is government waste, the attacks on the CFPB have caused some of his supporters to hesitate.

Darren Cobb, a 61-year-old retired auto dealership manager from Las Vegas, faced two months of frustration with his mortgage company over unpaid local taxes.

After sending nine letters and making multiple calls with no resolution, Cobb filed a complaint with the CFPB. Soon after, the tone of his mortgage company shifted dramatically. Within two weeks, the issue was settled. He had already paid the $800 tax bill a second time to avoid penalties, but the mortgage company refunded him promptly, overnighting the check.

“Sometimes you hit a wall, and you need an advocate,” Cobb states. “If that agency is dismantled, where will consumers turn? There will be no one there to help.”

Cobb, who voted for Trump, acknowledges the presence of government inefficiency but urges the president to appreciate the agency’s vital functions before pursuing cuts.

“You can’t just start chopping without understanding the repercussions,” he advises.