Acting director of US Consumer Financial Protection Bureau instructs all staff not to perform 'any work task

Hundreds of protesters gathered outside the U.S. Consumer Financial Protection Bureau (CFPB) headquarters on Monday after President Donald Trump’s newly appointed chief ordered all agency staff to stay home.

Demonstrators rallied in a courtyard near the White House, chanting slogans like “Let us work!” and “Who are we? CFPB! What do we do? Work for you!” The agency has long been viewed as a critical safeguard for consumers, recovering billions of dollars for wronged parties, according to its supporters.

However, critics in the financial industry and among Republican lawmakers argue the CFPB is too powerful and lacks sufficient oversight.

The conflict escalated over the weekend when the CFPB’s Washington headquarters was abruptly shuttered, effectively halting operations for nearly 2,000 federal employees responsible for enforcing consumer financial laws.

“Employees should not come into the office,” acting CFPB Director Russell Vought wrote in an email to staff. “Please do not perform any work tasks.”

Senator Elizabeth Warren, who helped create the CFPB, spoke at the protest and emphasized its importance. “The CFPB caught the crooks and made them give back $21 billion to consumers,” Warren said.

Vought, known for his budget-cutting stance, took control of the CFPB on Friday. He is a key architect of Project 2025, a conservative policy agenda that calls for dismantling the agency.

Efforts to neutralize the CFPB intensified as Elon Musk’s Department of Government Efficiency gained full access to the agency’s computer systems over the weekend. Vought immediately halted all oversight of consumer financial companies.

"CFPB RIP"

Musk made his intentions clear, posting “CFPB RIP” on his social media platform X. His planned business venture with payments giant Visa would have been subject to CFPB regulation.

The White House defended the move, calling the CFPB a “woke, weaponized arm of the bureaucracy” that targets specific industries and individuals. “The weaponization ends right now,” the statement read.

Protests continued into Monday evening, with CFPB staff, Democratic lawmakers, and progressive organizations rallying outside the agency’s headquarters.

The National Treasury Employees Union, representing CFPB staff, filed a federal lawsuit Sunday, arguing that Vought’s actions violate the Constitution by undermining Congress’s authority to fund and define the agency’s mission.

The CFPB was established as part of the 2010 Dodd-Frank financial reform law to protect consumers from abusive financial practices. Its budget is not controlled by Congress but is requested from the Federal Reserve. Vought has already stated that he will request no new funding for the agency, which currently holds over $700 million in reserves.

U.S. Representative Maxine Waters joined the protest, warning that efforts to shut down the CFPB put consumers at greater risk of fraud, scams, and other predatory practices.

“The administration’s latest actions show they are determined to effectively shut down the CFPB for the next four years,” Delicia Hand, senior director at Consumer Reports, said in a statement.

Market Reactions

Bank stocks underperformed on Monday, with the S&P 500 bank index down 1.9% in afternoon trading. Synchrony Financial CFO Brian Wenzel said the company has not changed its interactions with the CFPB. “We’re keeping our head down,” Wenzel said. “We have a lot of respect for the CFPB and will continue to work with them. It’s business as usual.”

Critics have taken issue with former CFPB Director Rohit Chopra’s aggressive approach, accusing him of overstepping legal boundaries in his regulation of the financial sector.

Christopher Wolfe, head of North American banks at Fitch Ratings, predicted that some recent CFPB rules—particularly those targeting fees—are likely to be rolled back. “It’s status quo for consumers for now,” Wolfe said.