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The mass firing of consumer protection workers was stopped by a judge
The Consumer Financial Protection Bureau (CFPB) is sending out mass layoffs notices, defying a court order blocking further layoffs. The National Treasury Employees Union (NTEU) alleged that this violated a March court order preventing the Trump administration from carrying out a previous, Department of Government Efficiency (DOGE)-spurred attempt to dismantle the agency. The NTEU said…
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The agency plans to shift its focus as it begins to lay off staff
The US Consumer Financial Protection Bureau (CFPB) has started issuing layoff notices to some employees, according to a report by NPR. Last week, a judge had issued a partial stay on the Bureau’s decision to fire any employee until it decides whether to issue a reduction in force (RIF). The agency was founded in the…
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Two top officials quit after being ordered to stop work
Acting Consumer Financial Protection Bureau Director Russell Vought has announced the resignations of Supervision Head Julio Salas and Enforcement Head Eric Halperin via emails that were reviewed by WIRED. The resignations were announced to their respective teams via emails that were shared with NPR by current and former employees of CFPB. “I don’t believe…I can…
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Top consumer watchdog in the United States has a plan for dealing with data brokers
The Consumer Financial Protection Bureau’s (CFPB) proposed action aims to stop data brokers from enabling scammers, stalkers and spies to undermine US’ safety and security. The CFPB has proposed to regulate data brokers in the same way as credit reporting agencies. It would require data brokers to obtain explicit authorisation from people before sharing their…
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A challenge to a consumer agency is not very popular with the Supreme Court
The US Supreme Court will hear a case challenging the funding for the Consumer Financial Protection Bureau (CFPB). The government appealed to the Supreme Court because many other agencies are similarly funded, including the Federal Reserve itself. The agency gets its money from the Fed, which in turn, is funded by bank fees.
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The structure of the financial watchdog agency, CFPB, is unconstitutional
The US Court of Appeals for the 5th Circuit has said the Consumer Financial Protection Bureau is not unique as an agency that doesn’t receive its annual funding determined by Congress. “At least in the region of the 5th circuit, Texas, Louisiana, and Mississippi, other CFPB rules can be challenged with similar lawsuits,” a court…
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Wells Fargo will pay billions of dollars to settle claims that it wrongly seized homes and cars.
The US Consumer Financial Protection Bureau (CFPB) has ordered Wells Fargo to stop charging surprise overdraft fees on bank accounts and make sure auto loan borrowers get refunds for certain add-on fees. “We and our regulators have identified…unacceptable practices that we have been working systematically to change and provide customer remediation where warranted,” Wells Fargo…