WASHINGTON—It did not take Russell Vought long to take a step toward possibly dismantling the CFPB.
As CUToday.info reported, Vought late Friday was named acting director of the CFPB, stepping in for Treasury Secretary Scott Bessent, who earlier this week was also named acting CFPB director following the departure of Rohit Chopra.
On Saturday, Vought posted on X:
“Pursuant to the Consumer Financial Protection Act, I have notified the Federal Reserve that CFPB will not be taking its next draw of unappropriated funding because it is not ‘reasonably necessary’ to carry out its duties. The Bureau's current balance of $711.6 million is in fact excessive in the current fiscal environment. This spigot, long contributing to CFPB's unaccountability, is now being turned off.”
Vought, RealClearPolitics reported, also sent an email to CFPB staff notifying them that the Bureau would:
- Not approve or issue any proposed or final rules, formal or informal guidance
- Suspend the effective dates of all final rules that were issued or published, but had not yet become effective. Bessent gave a similar order to suspend these efforts temporarily, though Vought’s is to suspend them indefinitely
- Not commence, take additional investigative activities related to, or settle enforcement actions
- Not open any new investigation in any manner, and cease any pending investigations
- Not issue public communications of any type, including publication of research papers and compliance bulletins
- Not approve or execute any material agreements, including related to employee matters or contractors
- Not make or approve filings or appearances by the bureau in any litigation, other than to seek a pause in proceedings. Then-acting director Bessent filed a motion to stay litigation related to America’s Credit Unions’ challenge to the bureau’s overdraft rule, as well as a similar motion in the bureau’s medical debt lawsuit, last week
- Cease all supervision and examination activity
- Cease all stakeholder engagement
The CFPB's website was down early Monday morning.
Reactions To Vought’s Move
Michael Moebs, economist and chair of Moebs $ervices, has stated that Vought is more likely than Bessent to dismantle the CFPB.
America’s Credit Unions Chief Advocacy Officer Carrie Hunt, reacted to the news, stating, “As we navigate the uncertainty, America’s Credit Unions is zealously advocating for credit union interests America’s Credit Unions will keep credit unions informed of the Bureau’s efforts.”
Defense Credit Union Chief Advocacy Officer Jason Stverak agreed the move is possibly a step toward taking apart the Bureau.
“This is a big step by the Trump Administration to reign in the regulatory state that has hindered credit unions’ ability to serve their members,” Stverak said. “We understand this is going to be a long process, but we are thankful this process has started and look forward to getting back to a place where regulators trust credit unions to serve their members.”
As CUToday.info reported, last week Bessent mandated a suspension of a wide range of activities at the agency. And among those activities halted is the imposing of the $5 OD cap for financial institutions over $10 billion in assets.