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As Musk Attacks CFPB, GOP Lawmakers Take Aim at Overdraft Rule—A Gift to Wall Street
"This is just the latest broken promise from Republicans, who have used their short time in power to already cater to special interests over hardworking Americans," said one watchdog leader.
Feb 18, 2025
A U.S. watchdog group on Tuesday slammed Republicans in Congress for trying to kill the Consumer Financial Protection Bureau's overdraft rule as U.S. President Donald Trump and billionaire Elon Musk target the CFPB as a whole.
The Accountable.US statement came in response to Senate Banking Committee Chair Tim Scott (R-S.C.) and House Financial Services Committee Chair French Hill (R-Ark.) recently introducing a Congressional Review Act (CRA) resolution to overturn the rule that capped most overdraft fees at $5, which was finalized in December, near the end of the former President Joe Biden's term.
"Overdraft fees affect a huge portion of American families with 17% of households with checking accounts paying overdraft or [nonsufficient funds] fees in 2023," Accountable.US noted. "This action would open the door for $35 overdraft fees—a decision that would cost American households an average of $225 each year."
The watchdog's executive director, Tony Carrk, declared that "undoing the CFPB's overdraft fee rule is a gift to big banks and a gut punch to the wallets of millions of Americans across the country."
"Deceitful and excessive overdraft fees cost Americans billions of dollars every year, but the Trump administration and Republicans in Congress don't seem to care any longer about lowering costs for Americans now that they're in charge," he continued. "This is just the latest broken promise from Republicans, who have used their short time in power to already cater to special interests over hardworking Americans."
When the Republican chairs introduced their CRA resolution last week, Scott called the Biden-era CFPB rule an example of the "pursuit of political headlines over sound policies," and Hill described it "midnight rulemaking" and "another form of government price controls that hurt consumers who deserve financial protections and greater choice."
Meanwhile, when the CFPB finalized the rule, the agency said that it "took action to close an outdated overdraft loophole that exempted overdraft loans from lending laws." At the time, the bureau was still directed by Biden appointee Rohit Chopra, who highlighted that large banks' exploitation of the loophole had "drained billions of dollars from Americans' deposit accounts."
The rule "was scheduled to become effective in October," but "because of acting Director Russ Vought's unlawful order stalling all CFPB work, the effective date has been suspended," The American Prospectreported Monday. "If Congress passes the CRA resolution, the overdraft rule could not come back in any 'substantially similar' form. So it matters if congressional Republicans decide to support allowing banks to impose additional junk fees worth billions of dollars."
The outlet also pointed out that "because CRA resolutions cannot be stopped by a filibuster, they represent some of the most likely legislative actions of the early Trump term," given Republicans' narrow majorities in Congress."
It's not just the rule that's in jeopardy; the entire agency is at risk. Trump and Musk, the leader of the president's Department of Government Efficiency (DOGE)—though perhaps not on paper—are working to gut the federal workforce and slash spending, and they have the CFPB in their crosshairs.
An agreement reached Friday in federal court halted mass firings at the CFPB and barred the bureau and its temporary leader, Vought—who also leads the Office of Management and Budget—from purging data or defunding the agency while the case moves forward. However, Trump and Musk are expected to continue their effort.
"The same billionaires trying to kill the CFPB are the ones who profit off predatory loans, sky-high fees, and financial scams that target young people," Corryn G. Freeman, executive director of the youth-focused Future Coalition, said Monday. "The CFPB should be strengthened, not eliminated. If Musk and his allies succeed in gutting this agency, it will be open season on young consumers with no one left to protect them."
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'So Much for Lowering Costs': Fury Over Musk's Death Wish for CFPB That Returned Over $20 Billion to Consumers
"The richest man in the world wants to shut down an agency that keeps people like him from ripping off the rest of us."
Feb 08, 2025
Defenders of a Consumer Financial Protection Bureau that has returned tens of billions of dollars to duped and defrauded U.S. consumers expressed outrage overnight and into Saturday after the independent agency was declared deceased by billionaire Elon Musk and its operations were handed over to the chief architect of the far-right Project 2025 Russell Vought.
Vought, who earlier this week was confirmed as head of the Office of Management and Budget by Senate Republicans, was named acting director of the CFPB by President Donald Trump, according to various reports.
The appointment of the far-right ideologue came less than a day after reports emerged that members of the Musk-led Department of Government Efficiency( DOGE) were granted access to key CFPB systems and Musk himself posted to his online social media X that the agency should "RIP," suggesting it was in the process of being dismantled or, in his mind, already killed.
"Since its creation, the Bureau has returned $21 billion to people's wallets by fighting against illegal financial charges, junk fees, debts, and fraud," said Mike Calhoun, president of the nonpartisan Center for Responsible Lending, in a statement on Saturday. Now, when people are already struggling to pay higher prices for necessities like eggs and milk, the Trump administration appears to have decided to deepen the pain by directly taking aim at the agency that helps keep our money safe."
"When people are already struggling to pay higher prices for necessities like eggs and milk, the Trump administration appears to have decided to deepen the pain by directly taking aim at the agency that helps keep our money safe."
"'Let them eat debt' is not a strategy for making America great again," Calhoun added, "and weakening the CFPB certainly isn't the way to keep working families, our financial markets, or our economy strong."
Stacy Mitchell, co-director of the Institute for Local Self-Reliance, which challenges corporate encroachment on the common good, said, "Obviously this isn't about 'efficiency.' It's about dismantling law enforcement that protects Americans from corporate power."
Congressional Democrats also reacted with contempt to Musk's message and the news that the agency's systems—like those of other agencies DOGE has put its hands on—were under threat.
"Here is the richest man in the world bragging about eliminating an agency that has delivered $21 billion back to working-class families since its inception," said Democrats on the House Committee on Financial Services, led by Ranking Member Maxine Waters of California. "Even most Republicans want the CFPB to continue protecting them from being ripped off by abusive big banks and predatory lenders."
"Here are the FACTS: 81% of voters, both Republicans and Democrats, support the CFPB and want the agency to continue its work," said Rep. Juan Vargas (D-Calif.), also a member of the committee. "Even so, Trump has moved to freeze the CFPB to take money out of YOUR pocket to line those of his billionaire friends."
In a letter sent to the CFPB on Friday—addressed to the previous acting director, Treasury Secretary Scott Bessent, whose first act of business was reportedly to order a halt of "all meaningful work"—Waters, Vargas, and 79 other Democratic members of the House said they were "deeply alarmed and troubled that you appear to be launching the Trump Administration's plan to contravene the will of Congress and unlawfully 'delete' this popular consumer watchdog that enjoys the broad bipartisan support of four out of five Americans."
According to the letter:
... we understand that you have ordered staff to halt all meaningful work of the CFPB, including ordering staff to stop investigating violations of consumer financial protection laws or settling enforcement actions, basically letting bad actors off the hook. We also understand that you have arbitrarily ordered the suspension of all CFPB rules that have yet to take effect, which would delay billions of dollars in savings and credit opportunities for consumers, if not rob them entirely.
We urge you to immediately rescind what appears to be an illegal stop work order and allow the public servants at the CFPB to get back to work for the American people as required by law.
As of this writing, the CFPB's homepage (www.consumerfinance.gov) prominently displayed a 404 error message, though portions of the site appeared to be active.
In a Saturday statement, the Democrats on the House Finance Committee said the 404 image on the CFPB website was intentionally "deceptive," calling it "a brazen attempt to fool consumers and the public about the status" of the agency.
"As of this moment, links and pages are still up and functional on the website," the statement said, "including the Consumer Complaint portal and database and Home Mortgage Disclosure Act (HMDA) database. Various aspects of the CFPB's web content is required by statute to be published and available on the CFPB's website."
"Let's be clear: the people cheering this the loudest are scammers and people who don't want you to keep your hard-earned dollars. So much for lowering costs."
Nadine Chabrier, counsel at the Center for Responsible Lending, said the "deeply troubling" developments at the agency will "undermine the CFPB's mission to protect consumers from financial misconduct" of various kinds.
"CFPB has returned more than $20,000,000,000 to consumers since it was founded," said Rep. Gabe Amo (D-R.I.) on Friday evening in response to Musk's tweet. "Let's be clear: the people cheering this the loudest are scammers and people who don't want you to keep your hard-earned dollars. So much for lowering costs."
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Unions Sue to Revoke Musk Cronies' Access to Critical Payment System
"It is disgraceful that the Trump administration has allowed unelected billionaires and their lackeys unfettered access to the personal and financial information of Americans."
Feb 04, 2025
A pair of labor unions and an advocacy group representing retirees sued the U.S. Treasury Department on Monday in an effort to halt Elon Musk's team's dangerous access to a critical government payment system—access granted by U.S. President Donald Trump's handpicked Treasury chief.
In a lawsuit filed with the U.S. District Court for the District of Columbia, the Alliance for Retired Americans, the American Federation of Government Employees (AFGE), and the Service Employees International Union (SEIU) said they're seeking to stop the Trump Treasury Department's "unlawful, ongoing, systematic, and continuous disclosure of personal and financial information" to Musk and members of his so-called Department of Government Efficiency( DOGE).
"The scale of the intrusion into individuals' privacy is massive and unprecedented," the complaint states. "Millions of people cannot avoid engaging in financial transactions with the federal government and, therefore, cannot avoid having their sensitive personal and financial information maintained in government records."
Treasury Secretary Scott Bessent's decision last week to give DOGE "full, continuous, and ongoing access to that information for an unspecified period of time means that retirees, taxpayers, federal employees, companies, and other individuals from all walks of life have no assurance that their information will receive the protection that federal law affords," the lawsuit adds.
The coalition urged the court to immediately enjoin the Treasury Department from "continuing to permit such access," which has sparked calls for Bessent's impeachment as observers characterize the Musk team's infiltration of key federal agencies as a coup.
"It is disgraceful that the Trump administration has allowed unelected billionaires and their lackeys unfettered access to the personal and financial information of Americans," AFGE national president Everett Kelley said in a statement Monday. "Together, we can stop this violation of American citizens' privacy."
Richard Fiesta, executive director of the Alliance for Retired Americans, said that "we are outraged and alarmed that the Trump administration has allowed so-called DOGE staff to violate the law and access millions of older Americans' sensitive personal and financial data."
"Seniors are already the most vulnerable Americans to fraud and scams, with FBI data showing losses of $3.4 billion in 2023 alone," Fiesta added. "We urge the court to quickly act to stop this unlawful theft of our data."
"We are living a nightmare created by Donald Trump and Elon Musk, and we need to wake up."
The lawsuit was filed as Bessent reportedly assured Republican lawmakers behind closed doors that Musk and his cronies "do not have control over" the Treasury payment system overseen by the Bureau of the Fiscal Service.
But reporting out Tuesday morning suggests that's not true. According toWired, "a 25-year-old engineer named Marko Elez, who previously worked for two Elon Musk companies, has direct access to Treasury Department systems responsible for nearly all payments made by the U.S. government."
Citing unnamed sources, Wired reported that "Elez's privileges include the ability not just to read but to write code on two of the most sensitive systems in the U.S. government: The Payment Automation Manager (PAM) and Secure Payment System (SPS) at the Bureau of the Fiscal Service (BFS)."
Researcher Nathan Tankus wrote in his newsletter early Tuesday that "we are in such a catastrophic situation I do not have the words to describe."
"It is getting worse and very little is being done. Lawsuits have been launched to stop this on privacy grounds, but we need so much more. Strongly worded letters from Congress are not enough," wrote Tankus. "There is a protest at the Treasury today. This is not a newsletter to tell you how to organize or engage in political action. But wherever you are, whatever your context, get involved in resisting the Trump administration's catastrophic lawlessness and destruction. And get the word out about the Trump-Musk Treasury Payments Crisis of 2025, which is the crisis above all the crises happening concurrently."
At a press conference on Monday, Sen. Elizabeth Warren (D-Mass.) said that "when unelected billionaires start ransacking our government offices, this is not business as usual."
"We are living a nightmare created by Donald Trump and Elon Musk, and we need to wake up," Warren added. "We need to use every tool we have to fight back, and in the Senate, we can start by saying no to dangerous Trump nominees like Tulsi Gabbard or Russ Vought."
This story has been updated with new reporting from Wired.
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