CFPB layoffs significantly raise consumers’ risk of fraud
Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829
Washington, DC – The National Consumers League (NCL) is calling on the Trump Administration to immediately stop the sweeping layoffs announced at the Consumer Financial Protection Bureau (CFPB). Reports that the Administration plans to lay off 1,500 positions across the CFPB’s enforcement and supervision divisions will drastically reduce the agency’s ability to fulfill its core mission of protecting consumers.
“This is a reckless move that will leave millions of Americans more vulnerable to financial fraud and abuse,” said NCL VP of Public Policy John Breyault. “With only about 200 personnel left to oversee the financial marketplace, the Bureau’s effectiveness will be severely compromised at a time when scams, identity theft, and predatory lending are on the rise. This is yet another attempt by this administration to dismantle one of the most effective consumer protection watchdogs in the federal government.”
The move to narrow the CFPB’s focus to only the most “tangible” harms and retreat from regulating nonbank financial actors—such as payday lenders, peer-to-peer platforms, and digital payment services—ignores the rapidly evolving threats consumers face in the financial marketplace. Many of these sectors are precisely where fraud and abuse thrive due to a lack of oversight.
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About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.
