On January 31, the CFPB announced Treasury Secretary Scott Bessent as the Acting Director. As previously covered by InfoBytes, Bessent sent an email instructing all CFPB staff to pause immediately any new rulemaking, enforcement investigations, public communications, litigation efforts, and other work. The email called for a freeze on CFPB enforcement, including ongoing lawsuits, and suspended the effective dates of future final rules.

A week later, on February 7, the Office of Management and Budget director Russell Vought was appointed the Acting Director of the CFPB. The next evening, it was reported that Vought sent an email to CFPB staff halting basically all CFPB activities, including supervision. The Bureau can still take complaints, but it is not conducting exams or pursuing existing investigations.

In response, 81 Democratic congressional members sent a letter to then-Acting Director Bessent expressing alarm over the CFPB’s recent work stoppage. Rep. Maxine Waters (D-CA) and Rep. Bill Foster (D-IL), among others, addressed a letter to the Acting Director, accusing him of halting the Bureau’s operations: “We are deeply alarmed and troubled that you appear to be launching the Trump Administration’s plan to contravene the will of Congress and unlawfully ‘delete’ this popular consumer watchdog that enjoys the broad bipartisan support of … Americans.”

The letter outlined four questions on the Acting Director’s decisions and requested detailed explanations. Congressional members required a response by February 14. They added: “We urge you to immediately rescind what appears to be an illegal stop work order and allow the public servants at the CFPB to get back to work for the American people as required by law.”

In a social media video posted on February 10, Senator Elizabeth Warren (D-MA) expressed opposition to actions taken by Acting Director Russell Vought and Elon Musk, which she claimed would dismantle the CFPB. Warren emphasized the crucial role of the CFPB in protecting consumers from financial scams and unfair practices by banks and corporations. She highlighted the Bureau’s achievements, such as recovering over $21 billion for affected families, including veterans. Warren argued that efforts to weaken the CFPB could be motivated by a desire to benefit wealthy individuals and corporations at the expense of consumers. She urged the public to contact their representatives and spread awareness to defend the CFPB.