What Happens To All Those CFPB Lawsuits As DOGE Attempts To Dismantle Agency?

The Consumer Financial Protection Bureau was in the midst of suing several large corporations for ripping off consumers when the Trump administration began dismantling the agency in February.

So what happens to all those lawsuits?

Bentley University professor and creator of scamicide.com Steve Weisman shared some insight about the future of the CFPB.

“Since the time it was created, it has returned $21 billion to harmed consumers,” said Weisman. “It’s also an independent agency, and so I believe there probably will be lawsuits in regards to the manner in which the president is trying to shut it down.”

Bentley University professor and creator of scamicide.com Steve Weisman shared some insight about the future of the CFPB. (WJAR)

Weisman speculates that even if the Trump administration is prevented from shutting down the CFPB, they will likely reduce the agency’s funding.

“But meanwhile, you’ve got lawsuits such as the one with the student loan servicer Navient, and there’s $100 million lawsuit that is hanging out there that is in limbo because they really can’t operate at this point,” said Weisman.

He continued, “To me, one of the biggest ones is a case they have brought against the banks that operate Zelle – and there were a lot of problems with Zelle being particularly susceptible to fraud and scams and cyber criminals – and frankly, that is now dismissed.”

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But Weisman said some of these lawsuits aren’t completely dead.

“Now to a certain extent, state attorneys general will have authority to act in these certain kind of consumer protection instances that the CFPB formally did; however, they really don’t have the expertise to deal with these cases,” said Weisman. “So we’re kind of in an unprecedented area.”

He continued, “There are cases that are being dismissed and consumers that are going to be hurt there, and there are cases that are being dismissed after they’ve already gone to settlements, and yet there’s not apparatus to deal with those settlements.”

What happens to all those Consumer Financial Protection Bureau lawsuits as DOGE attempts to dismantle the agency? (WJAR)

If you’re a consumer who was expecting a settlement from a CFPB lawsuit, Weisman says sit tight.

While you may not see that money anytime soon, the agency isn’t dead yet, so there’s still a chance you may see some of that money.

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Weisman also suggests reaching out to your representative in Congress and tell them you want to keep the CFPB alive.