Almost every exit poll conducted on Election Day found that voters cared more about the issue than any other. concerns about the economy He helped return Donald Trump to the White House and restore Republicans to control of the House and Senate. Americans felt the pain of inflation and struggled to make ends meet as a company. Prices of essential goods rise steadily Like food and clothing, they voted in hopes that a new government and a new Congress would bring comfort to their families.
So one of the first federal agencies to come under the incoming administration's watch is returning billions of dollars to many of the same consumers who counted on leaders in Washington to take care of their wallets. It is especially surprising that this is an institution that has
On November 27, Elon Musk, along with Vivek Ramaswamy, was tasked with implementing new policies by President-elect Trump. Government Efficiency Bureau — posted on Platform X “I want to delete CFPB” Refers to the Consumer Financial Protection Bureau. Musk said the agency is part of the problem of “too many overlapping regulatory agencies” in Washington. But no other federal agency returns funds to Americans' bank accounts like the CFPB.
Since our agency was established, returned more than $19 billionProvide cash to people who have been defrauded by predatory payday lenders and financial institutions such as the nation's largest banks. Similar actions have been taken under Republican and Democratic presidents, including major actions against Wells Fargo and Equifax during President Trump's first term, which collectively returned $425 million to consumers. did. (Both of these actions began under the Obama administration, but CFPB directors under the Trump administration oversaw enforcement of the fines.)
Recovered funds will be provided to those affected by financial institution fraud through the CFPB's Victim Relief Fund. To date, more than 200 million Americans have qualified for payments from this fund. The agency also completely canceled many consumers' debts and reduced the loan principles of many others.
In fact, days after Musk posted a message to CFPB announced The company reportedly mailed refund checks to more than 4 million people who were defrauded by so-called credit repair companies such as Lexington Law Firm and Credit Repair.com. The company illegally collected fees from consumers seeking relief from the effects of economic hardship weighing heavily on them and their livelihoods. family. The companies will pay $2.7 billion in consumer redress and civil penalties. Of that amount, $1.8 billion will go directly to those who have suffered losses as a result of fraud.
No wonder the agency has broad bipartisan supportmore than 8 in 10 Americans support the CFPB's various enforcement actions. In red and blue states, Americans appear to support returning money to those who were defrauded.
The influence of this institution is felt in other ways as well. In Oklahoma, the CFPB collected evidence in support of the case of retired Lt. Col. Susan Parisi. Her battle with loan company GreenSky — that tricked her into taking out a high-interest loan she never agreed to. The CFPB found that GreenSky used “deceptive” and “deceptive” tactics, ordered the company Returning $9 million to consumers. My organization is representing Lt. Col. Parisi's class action lawsuit on behalf of others who were deceived by GreenSky.
So why would an agency that has been so effective and returned so much money to so many people be targeted for “removal”? Because in the process of holding criminals accountable, he intersected with some of the most powerful people in this country.
For example, Musk's post on X seems to have been inspired by: Complaint from Marc AndreessenA venture capitalist whose company has been sanctioned (or shut down in the case of Lend Up Loans) due to CFPB investigation and action. Andreessen accused the agency of “striking fear into financial institutions” after the CFPB discovered that LendUp had misled customers about high-interest loans and overcharging U.S. military personnel. I was furious.
President-elect Trump and Congressional Republicans believe that Mr. Andreessen's views support the growing public belief that financial institutions are doing the important work of bringing real change to people who turn to financial institutions and lenders for help in times of financial hardship. Don't cover up overwhelming opinions. In some ways, even under the first Trump administration's CFPB director (who tended to fine companies far less than Biden and Obama appointees), the agency took the following steps: over $1 billion Return compensation to consumers' wallets. That's direct relief and money in their wallets for millions of Americans. If the agency is “removed,” it is almost certain that such remedies will never be available to consumers again.
Fortunately, neither Mr. Musk nor the incoming administration will be able to completely eliminate the CFPB, whose funding typically comes from the Federal Reserve. upheld by the US Supreme Courtit is intended to protect against political interference. If Republicans and Democrats are serious about providing substantial and meaningful economic relief to the American people, they should ensure that the firewall remains in place and that the CFPB continues to operate.
Sharon McGowan is chief executive of the legal advocacy group public justice.
