CFPB Under Pressure As Consumer Complaints Pile Up

The Consumer Financial Protection Bureau (CFPB) is facing a sharp surge in consumer complaints at the same time its capacity to respond is being weakened by funding cuts, staffing reductions, and political/legal challenges. This combination is generating pressure from states, consumer advocates, and the financial industry over whether the agency can still perform its core watchdog role.​

What is driving the complaint surge

Several overlapping trends are pushing complaint numbers to record levels.​

• Complaints to the CFPB jumped 92% in 2024 to about 3.19 million, up from roughly 1.66 million in 2023.​

• Credit and consumer reporting issues dominate: credit report complaints rose 182% in 2024, and broader consumer report complaints rose 124%, driven heavily by incorrect information and identity‑theft‑related disputes.​

• In the first half of 2025, total complaints increased about 130% year‑over‑year to roughly 2.5 million, with domestic money‑transfer complaints (including Zelle) spiking more than 2,000% amid scams and social‑media‑driven filings.​

Why the CFPB is “under pressure”

The pressure comes from a mismatch between rising demand for help and a deliberate shrinking of the agency’s enforcement and supervisory role.​

• The Trump administration has moved to defund and dismantle the CFPB, with acting leadership halting most enforcement, litigation, rulemaking, and supervision and outlining plans to fire up to 90% of staff.​

• With much of the bureau not functioning, companies face less threat of federal oversight, reducing their incentive to participate seriously in the complaint process even as filings soar.​

• Former CFPB officials and consumer advocates warn this creates an oversight vacuum that makes it easier for financial firms and scammers to harm consumers without meaningful accountability.​

States and courts increasing the pressure

As the federal bureau is weakened, state officials and courts are becoming a focal point of the fight over consumer protection and CFPB funding.​

• Nearly two dozen states, led by New York’s attorney general, have sued the Trump administration, arguing that cutting off CFPB funding violates the law and undermines required processing and sharing of complaint data.​

• States say they depend on CFPB complaint data—“hundreds of thousands” of resident complaints—to open investigations and enforcement actions, and that a shutdown would directly harm their residents.​

• Federal courts in Washington, D.C. are reviewing challenges to the CFPB’s funding structure and the administration’s efforts to dismantle the agency, injecting further uncertainty into how long the current complaint system will function in its present form.​

What this means for consumers

For individual consumers, the pile‑up of complaints with weaker follow‑through increases risk and uncertainty.​

• Consumers still can file complaints, but relief rates in some areas (like credit reporting) have fallen sharply over time, and many people report frustration with automated, limited responses from companies.​

• If the CFPB’s role continues to shrink, more responsibility will likely shift to state regulators, private lawsuits, and internal company processes, which may produce uneven protections across states and firms.​

• Experts warn that in the absence of a fully functioning federal watchdog, financial markets may drift back toward more aggressive fees, opaque terms, and higher risk of scams, especially in areas like real‑time payments and digital platforms.​

Key numbers at a glance