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Top CFPB Enforcement Official Resigns Over Agency Dismantling Under Trump

Her resignation underscores a broader Trump administration plan to cut almost all CFPB enforcement staff

In April, a federal judge paused efforts by the Trump administration to lay off nearly 1,500 of the 1,700 employees at the Consumer Financial Protection Bureau.
Signage is seen at the Consumer Financial Protection Bureau (CFPB) headquarters in Washington, D.C., U.S., August 29, 2020. REUTERS/Andrew Kelly/File Photo
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Overview

  • Cara Petersen, who led enforcement for nearly 15 years, said current leadership has “no intention to enforce the law in any meaningful way” when announcing her departure
  • Acting CFPB Director Russell Vought is seeking to slash roughly 90% of the bureau’s workforce, prompting a fierce legal fight with the National Treasury Employees Union
  • The agency has dismissed over 20 pending enforcement cases and eliminated key litigation support teams since the administration took office
  • Petersen’s exit leaves the bureau without a permanent or acting enforcement director after earlier top officials stepped down
  • A federal appeals court is weighing the administration’s bid to overturn an injunction that barred deep staff cuts at the CFPB