The CFPB Isn't Actually Fair, but This Is

Here’s the thing about the Consumer Financial Protection Bureau (CFPB): we don’t like it. Plain and simple.

If you don’t know, the CFPB is one of the United States’ overreaching federal agencies. It oversees financial products and services to protect consumers, a measure that seemed necessary after the 2008 financial crisis.

(It’s giving “I’m from the government, and I’m here to help” vibes, yes?)

The CFPB is responsible for:

  • Regulating financial institutions. That means banks, credit unions, mortgage companies (hi!), etc. follow fair lending and consumer protection laws.
  • Enforcing consumer protection laws. So, if you don’t follow the rules, the CFPB is coming after you.
  • Providing consumer education. Let the CFPB brainwash educate you into believing that student loans are a good idea.
  • Handling consumer complaints. If you don’t like the way your bank talks to you, call the principal (that’s the CFPB).
  • Researching financial trends. This way, new financial rules and regulations are burdensome helpful.

All of this sounds fine (meh) in theory, right? So… why is President Trump talking about dismantling the CFPB?

The short answer is DOGE.

The longer answer is that conservatives have been berating the CFPB for years. They argue that it imposes excessive regulations. (From a government agency?! No way!) And, as they see it, those regulations hinder legitimate business operations.

So, it stands to reason that shutting down the CFPB will reduce unnecessary government intervention in the financial sector.

(We love to hear this.)

On the flip side, consumer protection advocates believe that dismantling the CFPB will be damaging to consumers, leaving them vulnerable to financial misconduct.

Let’s break that down. Without the CFPB, we could be looking at:

  • Consumer exploitation. This might look like hidden fees, abusive debt collection, or discriminatory lending.
  • Weakened financial stability protections. Nobody enjoyed the crash in 2008, so the CFPB was created to “protect us” from another one. (Real question… do you think it’s working?)
  • Reduced consumer recourse. Why fight your own battles when the CFPB can fight them for you with the speed of a snail?

On a more optimistic note. We could also be looking at:

  • Reduced government overreach. We really want to drive this one home. Excessive regulatory power increases compliance costs for businesses, which hinders growth. There’s no long-term way to deal with that, so… your favorite mom-and-pop shops are on the line.
  • Free market competition. (WHOOOOOOO!) This means good old-fashioned American innovation can take center stage. Let financial institutions fight for your business. You deserve it.
  • Reduced government spending. Again, we will keep beating this drum. If we defund the CFPB, we will reduce federal expenses, and our tax dollars can be funneled elsewhere. (Frankly, we probably need to defund “elsewhere,” too.)
  • Improved government efficiency. One word: DOGE.

So, here’s the kicker: The CFPB isn’t even funded by Congress. Rather, it’s funded by the Creature from Jekyll Island Federal Reserve.

This was an intentional gambit by Democrats that allowed the agency to evade Congressional oversight. Still allows it.

But that’s a double-edged sword. Since the agency isn’t funded by Congress, President Trump doesn’t need Congress to defund it.

Seems fair, right?