The CFPB plans to transfer its remaining enforcement actions and lawsuits to the Department of Justice as it expects to exhaust funding after Dec. 31, sources say. The bureau has already dropped most active enforcement matters this year and warns staff could face furloughs. Critics and union leaders say the move weakens consumer protections and accuse Acting Director Russell Vought of unlawfully withholding funds.
CFPB to Transfer Remaining Enforcement Cases to DOJ as Funds Near Exhaustion, Sources Say
By Douglas Gillison
The Consumer Financial Protection Bureau (CFPB) is preparing to transfer its remaining enforcement cases and litigation to the U.S. Department of Justice as the agency nears exhaustion of its funds, four people familiar with the matter said. The bureau warned last week it expects to run out of money after December 31.
What this means
The planned transfer would shift responsibility for high-profile matters — including litigation involving credit bureau Experian — to the Justice Department after the CFPB dropped most of its active enforcement actions earlier this year. CFPB and DOJ spokespeople did not immediately respond to requests for comment.
Staff and capacity concerns
Agency leaders have warned that employees could be furloughed or go unpaid once funds are depleted. Observers say it is unclear whether the Justice Department has the capacity to absorb the CFPB's caseload, particularly after months of staffing departures at the bureau.
Background
Established following the 2008 financial crisis, the CFPB is the sole federal agency tasked with enforcing consumer financial protection laws and has recovered more than $21 billion for harmed consumers. Since its creation in 2011, the bureau has faced sustained legal and political challenges from industry groups and Republican lawmakers who contend it exceeded its statutory authority.
Political reaction
Critics argue the move advances the Trump administration's efforts to diminish or dismantle the agency. Democrats warned that shifting enforcement responsibility and scaling back CFPB activity could leave consumers more exposed to scams, fraud and unfair practices.
“This is Russ Vought’s latest illegal power grab in his ongoing plan to shut down the CFPB and protect CEOs instead of consumers,” said Cat Farman, president of the CFPB's workers’ union, accusing Acting Director Russell Vought of unlawfully withholding funds and urging Congress to intervene.
Help us improve.
