A new set of declarations from current and former CFPB employees sheds light on the Trump administration’s plan to nearly eliminate the Consumer Financial Protection Bureau. These filings, submitted as part of a lawsuit aimed at halting mass firings at the agency, detail how officials planned to strip the Bureau down to just a “room with five men and a phone.” The declarations, filed in a lawsuit against the Bureau and its Acting Director by the union representing CFPB employees, also reveal that key agency functions, including monitoring consumer complaints, have been severely disrupted under Acting Director Russ Vought’s leadership.
Details:
- Mass Firings: According to testimony from employees identified as Alex Doe and Drew Doe, Vought and other Trump officials ordered the agency to “wind down” operations, with a plan to fire the vast majority of the Bureau’s 1,700 staff members. Employees were told that only five positions — those mandated by the Dodd-Frank Act — would remain. Vought’s team also moved to cancel contracts and end critical functions, such as the Consumer Complaint Database.
- Disruption of Key Functions: Declarations from employees like Matthew Pfaff and Erie Meyer reveal that the Bureau’s consumer complaint system has essentially been halted. With the stop-work order in place, only automatic processing continues, leaving thousands of complaints in limbo. As of now, about 10,000 complaints await manual review. Additionally, the position of student loan ombudsman has been left vacant, further impairing the agency’s ability to assist consumers.
- Canceling Contracts: Charlie Doe, a contracting officer at the CFPB, testified that the Trump administration rapidly canceled nearly $200 million worth of contracts, including those for expert witnesses and cybersecurity services. This unprecedented termination of contracts is expected to have lasting effects on the Bureau’s ability to enforce consumer protection laws.
- CFPB Headquarters Shutdown: According to Adam Scott, the CFPB’s Director of Digital Services, Vought ordered the agency’s homepage to be deleted, making it harder for consumers to access the Bureau’s resources. The building’s signage has been taken down, and the lease for the headquarters is being canceled.
- Court Intervention: A federal judge temporarily blocked mass layoffs and work stoppage orders after a legal challenge from the National Treasury Employees Union (NTEU). However, the Trump administration continues to argue that it only intends to “streamline” the CFPB, despite significant disruptions that have already occurred.
