Two top House Democrats are demanding clarity from Attorney General Pam Bondi after reports surfaced that the Consumer Financial Protection Bureau is transferring all of its active enforcement litigation to the Department of Justice; a move they warn could effectively dismantle the agency while ongoing court orders remain in place.
In a letter sent last week, Rep. Maxine Waters [D-Calif.] and Rep. Jamie Raskin [D-Md.] said the transfer of 13 active CFPB cases raises “urgent questions” about whether the DOJ intends to continue pursuing the matters or quietly dismiss them. They characterize the maneuver as the Trump Administration’s latest attempt to erode the CFPB’s enforcement capacity following earlier attempts at mass staff reductions and operational shutdowns.
A federal judge halted those firings in March through a preliminary injunction. Instead of complying, the lawmakers argue, CFPB leadership is now shifting enforcement work out of the Bureau entirely, potentially sidestepping the court order while leaving consumers without recourse.
The concerns come amid a string of voluntary case dismissals by the Administration. At least 22 enforcement actions have been dropped this year, including high-impact matters such as a case against Capital One involving more than $2 billion in alleged unpaid interest and an action against Zelle connected to more than $870 million in fraud losses. According to consumer advocates cited in the letter, the abandoned cases could have delivered over $3 billion in relief, with broader efforts to weaken the CFPB potentially costing consumers an additional $18 billion.
Waters and Raskin warned that shifting its caseload to DOJ risks stalling or eliminating accountability for financial institutions across the credit and payments ecosystem.
The lawmakers are requesting documents and communications about the transfers, including any coordination with the White House and DOJ plans for staffing and litigation. They argue the moves amount to a “backdoor effort” to dismantle the agency while shielding companies from enforcement consequences.
