Trump’s acting CFPB chief cuts off funding, suspends some oversight

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1.1. Trump's Acting CFPB Chief Cuts Off Funding, Suspends Some Oversight

Trump's Acting CFPB Chief Cuts Off Funding, Suspends Some Oversight

October 22, 2020

The acting head of the Consumer Financial Protection Bureau (CFPB) has cut off funding and suspended some oversight activities, drawing criticism from consumer advocates.

Mick Mulvaney, who is also the White House budget director, announced the changes in a memo to CFPB staff on Friday. The memo said that the bureau would no longer receive funding from the Federal Reserve and would instead rely on annual appropriations from Congress.

The memo also said that the CFPB would suspend some of its oversight activities, including examinations of banks and other financial institutions. Mulvaney said that these activities would be resumed once the bureau had received funding from Congress.

Consumer advocates have criticized the changes, saying that they will weaken the CFPB's ability to protect consumers. The National Consumer Law Center said that the changes will make it harder for the CFPB to do its job of protecting consumers from financial abuse.

The CFPB was created in the wake of the 2008 financial crisis to protect consumers from unfair and deceptive financial practices. The bureau has been a target of Republicans since its inception, who have argued that it is too powerful and burdensome on businesses.

Mulvaney has been a vocal critic of the CFPB, and he has taken steps to weaken the bureau since he became acting director in 2017. In 2018, he proposed a budget that would have cut the CFPB's funding by 25%. Congress rejected the proposal, but Mulvaney has continued to look for ways to reduce the bureau's budget.

The changes announced on Friday are the latest in a series of moves by Mulvaney to weaken the CFPB. Consumer advocates are concerned that these changes will make it more difficult for the bureau to protect consumers from financial abuse.