Russell Vought Says He Will Shut Down CFPB

Speaking on The Charlie Kirk Show, Vought said that only a small number of employees remain at the agency’s Washington headquarters “while we close down the agency.” He added, “We want to put it out and we will be successful probably within the next two or three months,” Reuters first reported.

The CFPB has been in the crosshairs of the Trump administration since he took office, but legal challenges — some of which are still being decided — have kept the agency open.

In February, Vought shut down most of the CFPB’s functions, closed its headquarters and said he was defunding the bureau. However, in response to a lawsuit filed by the union representing CFPB workers, DOJ lawyers denied that President Trump was going to actually close the bureau.

In April, the Trump administration fired 90% of the CFPB’s staff, setting off a legal battle during which the firings were put on hold. In August, a federal appeals court panel ruled that the firings could go forward, resulting in 1,500 workers being laid off.

In his interview Wednesday, Vought said of the CFPB: “All they want to do is weaponize the tools of financial laws against basically small mom-and-pop lenders and other small financial institutions.”

Representatives for the CFPB did not immediately respond to a request for comment from Reuters.

CFPB background

The CFPB was established in 2011 under the Dodd-Frank Wall Street Reform and Consumer Protection Act to combat predatory lending and abusive practices in consumer finance. The agency has imposed more than $5 billion in civil penalties on companies and individuals under consumer protection laws — including going after “junk” fees by servicers.

The bureau was an active regulator of mortgage lending and servicing during the administrations of Democratic presidents but took a more passive role in Trump’s first administration.

Cuts and rollbacks

The Trump administration has moved to eliminate most of the agency’s staff and has rolled back numerous enforcement actions and oversight initiatives, while publicly maintaining in court filings that it does not intend to close the CFPB entirely.

Attorneys representing CFPB employees have argued in court that the administration’s efforts to dismantle the bureau are illegal. In a March ruling, U.S. District Judge Amy Berman Jackson questioned the administration’s credibility — noting contradictions between its courtroom statements and public remarks.

Despite Vought’s assertion that the agency is winding down, some CFPB operations have continued in recent months. That includes an active lawsuit against credit reporting firm Experian.