Trump Administration Axes Key U.S. Consumer Watchdog—What It Means for Your Wallet
The Trump administration just pulled the plug on America's top consumer protection agency—no warning, no replacement.
Here's the fallout:
• Regulatory vacuum opens door for predatory lending
• Financial watchdogs now operating with one hand tied
• Banks and credit companies already popping champagne
Wall Street gets another win while Main Street picks up the tab—some things never change in the 'free market.'
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The CFPB is funded by the Fed’s surplus capital, although the central bank has been operating at a loss since 2022. As a result, the administration believes that the CFPB should be legally blocked from obtaining additional Fed funds.
CFPB Funding Set to Run Dry in ‘Early 2026’
The CFPB is a federal agency that protects people from unfair or deceptive practices by banks, credit card companies, and other lenders, and has returned over $21 billion to consumers since it was created in 2010 as part of the Dodd-Frank Act. Supporters of the watchdog argue that dismantling it WOULD place consumers at risk of misleading financial practices.
The CFPB stated that it currently has enough funding to operate until at least the end of 2025, although it “anticipates exhausting its currently available funds in early 2026.”
