Almost all polls conducted on Election Day found that voters, more than on any other issues, Concerns about the economy Help return Donald Trump to the White House and put Republicans back in office in both chambers of Congress. Americans who felt the sting of inflation and who had difficulty making ends meet as businesses Steady increase in commodity prices Like groceries and clothing, they voted in the hope that the new administration and new Congress would provide relief to their families.
So it’s particularly surprising that one of the first federal agencies to come under scrutiny by the incoming administration is one that has returned billions of dollars to many of the same consumers who were relying on leaders in Washington to look through their wallets.
On November 27, Elon Musk, along with Vivek Ramaswamy, was tapped by President-elect Trump to run a new project. Government Efficiency Department – He posted on his platform Wants to “Delete CFPB”, Referring to the Consumer Financial Protection Bureau. Musk said the agency was part of the problem of “too many dual regulatory agencies” in Washington. But no other agencies in the federal government return money to Americans’ bank accounts the way the CFPB does.
Since its founding, the agency has returned more than $19 billion in cash to people defrauded by financial institutions, including predatory payday lenders and even some of the nation’s largest banks. It has done so under Republican and Democratic presidents, including major actions against Wells Fargo and Equifax during President Trump’s first term in office, which collectively returned $425 million to consumers. (These actions began under the Obama administration, but Trump’s CFPB directors oversaw the implementation of those fines.)
Refunds are provided to those affected by institutional errors through the CFPB’s Victim Relief Fund. To date, more than 200 million Americans are eligible for payments from the fund. The agency also canceled debts for many consumers entirely and lowered loan principles for many others.
In fact, just days after Musk posted his message on X, CFPB announced It was mailing refund checks to more than 4 million people who were defrauded by so-called credit repair companies, including Lexington Law and CreditRepair.com, that illegally collected fees from consumers seeking relief from the effects of burdensome economic woes. On their shoulders and their families. Families. The companies will pay $2.7 billion in damages to consumers and civil penalties; Of that, $1.8 billion will go directly to those who lost money as a result of the scam.
No wonder the agency It enjoys broad bipartisan supportwith more than eight in 10 Americans supporting the various enforcement actions taken by the CFPB. In red and blue states, Americans seem to support returning money to those who have been cheated.
The agency’s influence can be felt in other ways as well. In Oklahoma, the CFPB collected evidence that helped retired Lt. Col. Susan Parisi Her battle is against loan company GreenSky – Which tricked her into getting a high-interest loan that she never agreed to. The CFPB found that GreenSky was using “deceptive” and “fraudulent” tactics. I ordered the company To return $9 million to consumers. My organization represents Lt. Col. Parisi in the class action lawsuit on behalf of others who have been defrauded by GreenSky.
So why should an agency that was so effective, and returned so much money to so many people, be targeted for delisting? Because, while holding wrongdoers accountable, she met some of the most powerful people in the country.
For example, Musk’s post on X appears to have been prompted by Complaints from Marc Andreessena venture capitalist whose companies have been sanctioned (and, in the case of LendUp Loans, shut down) due to CFPB investigations and actions. Andreessen accused the agency of “terrorizing financial institutions,” and was clearly outraged when the Office of Financial Policy Oversight found that LendUp had misled customers about high-interest loans and overcharged American service employees.
President-elect Trump and Republicans in Congress should not allow Andreessen’s views to overshadow the prevailing view among Americans that the agency is doing important work that makes a real difference for those who turn to financial institutions and lenders for help during difficult financial times. By one count, even under Trump’s first CFPB directors — who tended to impose far fewer fines on companies than Biden and Obama appointees — the agency brought More than $1 billion In compensating consumers’ wallets. This amounts to direct relief, and money in the wallets, for millions of Americans. “Deleting” the agency would almost certainly ensure that such future aid would never reach consumers again.
Fortunately, neither Musk nor the next administration can completely eliminate the CFPB, which is funded by the Federal Reserve on a model. Upheld by the US Supreme CourtThis is to protect it from political interference. Republicans and Democrats alike must ensure that the firewall remains in place, and the CPS remains in place, if they are serious about providing real, meaningful economic relief to Americans.
Sharon McGowan is CEO of Legal Advocacy Public justice.
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