The Consumer Financial Protection Bureau has been reduced to a skeleton crew. The department, which was created to oversee banks and financial institutions, has cut about 1,500 jobs, leaving about 200 employees and reducing the agency by about 90 percent.
In addition to cutting most of the staff, Chief Legal Officer Mark Paoletta sent a memo detailing the changed priorities for the CFPB. The bureau has been ordered to deprioritize subjects including consumer data, digital payments, medical debt and student loans. Mortgages will now be the leading topic for remaining employees.
SInce it was created in 2010, this department has pursued actions against financial and tech institutions accused of deceptive or abusive practices, with cases involving firms such as PayPal and Block, which created Cash App. It was also slated to provide oversight of the providers of digital wallets and payment apps.
However, since the start of 2025, the CFPB has abandoned multiple cases it had launched under President Joe Biden’s administration. The Office of Management and Budget’s Acting Director Russell Vought had signaled that the bureau’s days may be numbered when he ordered all of its “supervision and examination activity” to stop in February.
This article originally appeared on Engadget at https://www.engadget.com/big-tech/the-consumer-financial-protection-bureau-has-cut-90-percent-of-its-employees-225239056.html?src=rss
