The US Consumer Financial Protection Bureau (CFPB) has announced a temporary hold on all ongoing investigations and litigations, a move which has critics questioning its credibility. Under the leadership of Mick Mulvaney, the bureau’s acting director, the watchdog organization, typically responsible for safeguarding consumer rights, has considerably slowed down its rate of enforcement. This dramatic shift has occurred under the Trump administration, which had expressed an intention to decrease the power and reach of the CFPB.
Mulvaney’s decision to pause activities until further notice has raised numerous questions about the future of the bureau and its capacity for consumer protection. Critics interpret this move as part of a plan to defang the bureau and undermine the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. The act brought the CFPB into existence and it has since returned about $12 billion to consumers who fell prey to erroneous lending practices. This substantial reduction in its enforcement efforts may lead to a decline in its ability to protected consumers.
