This browser does not support the Video element.
CFPB 'stand down': Impact on consumers
The Consumer Financial Protection Bureau continues to be shuttered this week by DOGE. FOX 26's Heather Sullivan has a look at what the pause and potential changes means for consumers.
Houston - The Consumer Financial Protection Bureau continues to be shuttered this week by the Department of Government Efficiency.
The CFPB was founded in response to the 2008 mortgage meltdown to help protect you from financial fraud, abuse, and unfair practices.
What could the CFPB pause mean for you?
While you may not know much about the CFPB, it has been working on a lot of issues that affect your money that could now be impacted.
What they're saying:
Protesters sounded off after the Consumer Financial Protection Bureau was shuttered for a week.
"The CFPB is there to make sure that Elon's new project can't scam you or steal your sensitive personal data," said Senator Elizabeth Warren (D-Massachusetts).
But some critics say the CFPB has gone too far in its regulations.
"What they do is they prevent banks from engaging in what they're supposed to do," said Rep. Claudia Tenney (R - New York).
What are the impacts?
What we don't know:
So what's at stake? The shuttering puts a pause on the CFPB's actions, leaving questions up in the air about its pending lawsuits, including one accusing three banks of allowing fraud over Zelle payments, and another accusing Experian of failing to remove errors from some people's credit reports.
We asked University of Houston consumer law professor Jim Hawkins whether the CFPB could be shut down altogether.
"That would take an act of Congress because Congress created the Bureau. It’s unlikely the Bureau could be shut down because the law requires the Bureau to do certain things," explained Hawkins.
The CFPB recently finalized some rules, like limiting overdraft fees to $5 and removing medical debt from credit reports. But they haven't taken effect yet. And now they may not. But Hawkins says rules that are already in effect cannot be undone.
"Even though the home page for the CFPB says this page isn’t operational anymore, all the other pages where it has the prior rules and research the Bureau has done is all still active," said Hawkins.
Dig deeper:
Other rules the CFPB has been working on that could also end up stalling, include a rule to help you get refunds from Buy Now, Pay Later services when you return something that you purchased. The agency has also been working on a rule to make fees and interest more apparent on paycheck cash advance apps.
Where else consumers can turn for help
What you can do:
Meantime, Hawkins says consumers who need help with issues or disputes can still turn to other agencies, such as state Attorneys General.
"The state AG’s can enforce federal laws related to consumer protection. So there are still options, and plaintiffs lawyers who sue on behalf of consumers, to make sure our companies are following the rules," said Hawkins.
Consumers can also look for help from the Federal Trade Commission and the Better Business Bureau.
The Source: Information in this article comes from the CFPB and UH law professor Jim Hawkins.