CFPB, Federal Agencies, State Agencies, and Attorneys General
The Court of Appeals for the District of Columbia has granted a request for an en banc rehearing in the National Treasury Employees Union’s (NTEU) and others’ challenge to the firing of more than 1,400 CFPB employees and the taking of certain other actions to curtail the operations of the CFPB.
The Plaintiffs sued the Administration, contending that its plan to lay off the employees at the CFPB and to take certain other actions is tantamount to an abolishment of the agency.… Continue Reading
Current and former Democratic members of Congress have told a federal court that the Trump Administration’s interpretation of the CFPB’s funding mechanism is at odds with Congress’ plan to provide the bureau with a stable, independent source of funding.
On December 5, Rise Economy, the National Reinvestment Coalition and the Woodstock Institute filed a lawsuit against the CFPB and its Acting Director Russell Vought in the Federal District Court for the Northern District of California seeking declaratory and injunctive relief related to Vought’s determination not to seek funding from the Federal Reserve Board because of an opinion from the Justice Department’s Office of Legal Counsel (OLC).… Continue Reading
As required by amendments to the FDCPA made by Section 1089 of Dodd Frank, the CFPB recently released its annual report to Congress on FDCPA compliance. We note below information provided by the bureau about the complaints it received in 2024, the results of examinations publicly reported in 2024, and enforcement actions by other agencies. … Continue Reading
As we have previously reported, a lawsuit was brought early this year by the unions representing CFPB employees against Acting CFPB Director Vought and the CFPB in the DC District Court.
The Court months ago enjoined the CFPB from terminating some 1,400 employees and taking certain other actions in pursuit of Vought’s goal of minimizing the CFPB while the lawsuit is pending.… Continue Reading
On December 5, 2025, Rise Economy, the National Reinvestment Coalition and the Woodstock Institute filed a lawsuit against the CFPB and its Acting Director Russell Vought in the Federal District Court for the Northern District of California (San Francisco) seeking declaratory and injunctive relief related to Vought’s determination not to seek funding from the Federal Reserve Board because of an opinion provided to the CFPB by the Office of Legal Counsel of the Department of Justice (“OLC”) that it would be unlawful for the CFPB to make such a request based on there being no “combined earnings of the Federal Reserve System.”… Continue Reading
The Supreme Court should abandon a 90-year-old precedent and decide that President Trump should be permitted to fire Rebecca Slaughter from the Federal Trade Commission without cause, Solicitor General D. John Sauer told the Court on December 8 during oral arguments.
“I think broad delegations to unaccountable independent agencies raise enormous constitutional and real-world problems for individual liberty,” Justice Brett Kavanaugh, said.… Continue Reading
In Fiscal Year 2026, ending September 30, 2026, the CFPB will need $279.6 million just to maintain its activities that are required by law, Bureau Acting Director Russell Vought wrote in letters to House and Senate appropriators and President Trump.
Under Section 1017 of Dodd Frank, the CFPB may be funded only from the “combined earnings” of the Federal Reserve System (see here, here, and here; see our Podcast here).… Continue Reading
The Trump Administration is ordering all CFPB examiners to read a “Humility Pledge” to officials at supervised entities before conducting exams.
In making the announcement, CFPB officials sharply criticized the Biden Administration’s approach to exams. “Previously, under the leadership of Director Chopra and Biden’s Director of Supervision Lorelei Salas, a former Soros activist who was put on leave in February 2025, this division was the weaponized arm of the CFPB,” the CFPB said.… Continue Reading
The CFPB is transferring all of its pending litigation to the Justice Department as a result of the funding crisis the Trump Administration has said the bureau faces, several news organizations have reported.
In addition, at a meeting on Thursday, Michael Salemi, the CFPB’s acting director of enforcement, said that more than 100 people will be furloughed because the CFPB is running out of money, The American Banker reported.… Continue Reading
As previously reported, the CFPB is proposing major changes to its 2023 final rule that would require financial institutions to report information contained in loan applications submitted by small businesses, including women-owned and minority-owned small businesses. The rule is better known as the “Section 1071 rule” after the section of the Dodd-Frank Act that required the CFPB to adopt it.… Continue Reading
