Nearly every exit poll conducted on Election Day revealed that voters' economic concerns were the primary factor driving Donald Trump's return to the White House and Republicans reclaiming control of Congress. Americans burdened by inflation and struggling with rising costs of essentials like groceries and clothing cast their votes hoping that new leadership would alleviate their financial struggles.
This makes it all the more surprising that one of the first federal agencies under scrutiny by the incoming administration is one that has returned billions of dollars to consumers relying on Washington to safeguard their finances.
On November 27, Elon Musk—appointed by President-Elect Trump, alongside Vivek Ramaswamy, to lead the newly created Department of Government Efficiency—announced on his platform X his intention to "Delete CFPB," referring to the Consumer Financial Protection Bureau. Musk criticized the agency as part of a problem of “duplicative regulatory agencies” in Washington. However, the CFPB stands alone in its role, directly returning money to Americans impacted by financial misconduct.
Since its inception, the CFPB has recovered over $19 billion for victims of scams by financial institutions, including predatory lenders and major banks. This includes significant actions under both Republican and Democratic administrations, such as cases against Wells Fargo and Equifax during President Trump’s first term, which together returned $425 million to consumers. These efforts were initiated during the Obama administration but executed under Trump-appointed CFPB directors.
Funds recovered by the CFPB are distributed through its victims’ relief fund, providing direct payments to over 200 million eligible Americans. The agency has also canceled debts and reduced loan principals for many consumers. For example, just days after Musk’s post, the CFPB announced it would distribute refunds to over 4 million victims of scams by credit repair companies, including Lexington Law and CreditRepair.com. These companies were ordered to pay $2.7 billion in redress and penalties, with $1.8 billion going directly to defrauded consumers.
The CFPB’s broad and bipartisan support is no surprise. Polls show more than eight in 10 Americans back the agency’s enforcement efforts. Across red and blue states, the public overwhelmingly supports returning money to individuals cheated by financial institutions.
The agency’s impact goes beyond monetary refunds. In Oklahoma, CFPB investigations supported retired Lt. Col. Susan Parisi in her legal battle against GreenSky, a loan company that fraudulently enrolled her in a high-interest loan. The CFPB exposed GreenSky's deceptive practices, leading to a $9 million refund order. Lt. Col. Parisi is now part of a class-action lawsuit on behalf of others similarly defrauded.
Despite its effectiveness, the CFPB’s actions have made it a target for some powerful individuals. Musk’s post appears to have been influenced by complaints from Marc Andreessen, a venture capitalist whose companies faced CFPB sanctions, including the closure of LendUp Loans for misleading customers about high-interest loans and overcharging service members. Andreessen accused the CFPB of "terrorizing financial institutions," reflecting his frustration with its accountability measures.
President-Elect Trump and Congress should prioritize the views of ordinary Americans, who overwhelmingly value the CFPB’s work, over those of financial elites. Even under the first Trump administration, when CFPB directors pursued fewer fines than those appointed by Biden and Obama, the agency returned over $1 billion to consumers. Eliminating the CFPB would almost certainly end such consumer relief.
Fortunately, the CFPB’s funding structure, upheld by the U.S. Supreme Court, provides insulation from political interference, as it operates through the Federal Reserve rather than congressional appropriations. Lawmakers from both parties should protect this framework and preserve the CFPB if they are serious about delivering meaningful economic relief to Americans.
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