Trump Administration Plans Major Overhaul of Consumer Financial Protection Bureau

Republican leaders aim to scale back the CFPB's powers and funding, raising concerns about consumer protections and financial industry oversight.

President-elect Donald Trump and Republican lawmakers are preparing significant changes to the Consumer Financial Protection Bureau (CFPB), potentially reducing its regulatory authority and funding structure.
The CFPB, established after the 2008 financial crisis, has been a key agency for consumer protections, targeting issues like medical debt on credit reports, overdraft fees, and junk fees under Democratic leadership.
Republicans, aligned with financial institutions, are exploring leadership changes and structural reforms to ease oversight of banks, lenders, and tech companies, with candidates already being considered for the CFPB's top role.
Senator Elizabeth Warren, who originally proposed the CFPB, has expressed confidence in the agency's survival, citing strong public support across the political spectrum for its consumer protection efforts.
Critics warn that the proposed changes could weaken consumer safeguards, while polling shows widespread approval of the CFPB’s recent actions to address financial abuses and promote transparency.