WASHINGTON (AP) — The Trump administration has effectively shut down the Consumer Financial Protection Bureau (CFPB), an agency established to protect consumers in the wake of the 2008 financial crisis. The move, directed by Russell Vought, the newly installed director of the Office of Management and Budget, suspends nearly all CFPB activities, including rulemaking, investigations, and enforcement efforts.

In a Saturday night email confirmed by The Associated Press, Vought instructed the agency to stop work on proposed regulations, freeze implementation of finalized but not yet effective rules, and halt all investigative and supervisory work.

“We’re actually very encouraged it’s still projected to be finished by the end of March, but the cleaning date is set for April,” Gray said, highlighting the minimal delay.

CFPB Operations Suspended, Employees Ordered to Work Remotely

The email also mandated that the CFPB “cease all supervision and examination activity.” Furthermore, the agency’s headquarters in Washington, D.C., will remain closed from Feb. 10 through Feb. 14, according to a separate email obtained by The Associated Press. No explanation was provided for the closure.

“Employees and contractors are to work remotely unless instructed otherwise,” the email to headquarters staff read.

This directive mirrors broader efforts by the administration to scale back or eliminate certain federal agencies, including previous steps taken against the U.S. Agency for International Development (USAID).

Since the CFPB was created by Congress, a formal act of Congress would be required to dissolve it entirely. However, the director has discretion over enforcement actions, effectively rendering the agency non-functional if no actions are pursued.

Financial Impact and Political Response

Elon Musk commented, “CFPB RIP” on social media site X, signaling his stance on the shutdown. Meanwhile, the agency’s official website went offline Sunday, displaying a “page not found” message.

Vought further announced via X that the CFPB would not withdraw its next round of funding from the Federal Reserve. He described the agency’s $711.6 million reserve as “excessive.” The CFPB was originally structured to receive funding from the Fed to maintain independence from political influence.

“This spigot, long contributing to CFPB’s unaccountability, is now being turned off,” Vought said.

The CFPB’s Role and Ongoing Legal Battles

Since its inception, the CFPB has secured nearly $20 billion in relief for U.S. consumers, including canceled debts, compensation, and reduced loan costs. Just last month, the agency sued Capital One for allegedly misleading consumers about high-interest savings accounts, a case that involved over $2 billion in lost interest payments.

Dennis Kelleher, president of the advocacy group Better Markets, criticized the administration’s decision, stating, “That’s why Wall Street’s biggest banks and Trump’s billionaire allies hate the bureau: it’s an effective cop on the finance beat and has stood side-by-side with hundreds of millions of Americans—Republicans and Democrats—battling financial predators, scammers, and crooks.”

The move against the CFPB also highlights the contradiction between Trump’s campaign promises to reduce credit card interest rates and his broader regulatory rollback. While Trump had vowed to cap interest rates at 10% amid rising rates from the Federal Reserve, the CFPB had been actively working on how such a policy could be implemented.

Future of Consumer Protections

Under the new directive, the bureau can still accept consumer complaints but is barred from conducting investigations, examinations, or engaging with regulated companies and advocacy groups, according to an anonymous source familiar with the agency.

The situation has raised concerns about potential conflicts of interest, as Musk’s team reportedly would gain access to regulatory oversight data, which could influence future business ventures, such as X’s rumored payment system. The CFPB’s database includes information on financial service competitors such as Cash App.

The shutdown follows a similar directive issued by Treasury Secretary Scott Bessent on Feb. 3, marking another step in the administration’s push to curb federal regulatory power.

A Controversial History

The CFPB was created in the aftermath of the 2007-2008 financial crisis as part of the Dodd-Frank Act. Spearheaded by then-President Barack Obama and Massachusetts Sen. Elizabeth Warren, the agency has faced ongoing legal challenges from banks and financial industry groups since its inception.

“Vought is giving big banks and giant corporations the green light to scam families,” Warren said, condemning the decision.

Last week, Warren urged Trump to collaborate with the CFPB in addressing “de-banking,” a practice where banks close customer accounts deemed high-risk.

“I know that the Consumer Financial Protection Bureau is a favorite whipping boy of Republicans on this Committee, but the CFPB is the main agency in our government that is actively working to stop unfair de-banking,” she stated during a Senate Banking Committee hearing.

Leadership Shakeup and Regulatory Rollbacks

The shutdown follows Trump’s Feb. 1 firing of CFPB Director Rohit Chopra. Vought, a key figure behind Project 2025—a conservative policy blueprint—was named acting director.

During Chopra’s tenure, the CFPB enacted rules to limit overdraft fees, curb junk fees, and restrict data brokers from selling personal information, such as Social Security numbers.

With Vought at the helm, the future of consumer protection remains uncertain, as the agency’s ability to enforce financial regulations has been severely curtailed.