Changes to the CFPB Cost Americans $19B

Who knew I'd be writing about the fight over the Consumer Financial Protection Bureau (CFPB) agian. This has once again become one of the most heated economic and political battles in Washington. At the center of the storm is Russell Vought, a key figure in the Trump administration, and a new report backed by Senator Elizabeth Warren that claims recent changes to the agency have cost Americans billions.

The CFPB was created after the 2008 financial crisis to protect consumers from abusive practices by banks, lenders, and financial institutions. For years, it returned billions of dollars to Americans through enforcement actions, fines, and consumer relief. When the Trump administration took control of the agency in early 2025, its direction shifted dramatically. According to a report prepared for Sen. Elizabeth Warren, the bureau’s retreat from enforcement and regulation may have cost Americans at least $19 billion in lost consumer relief over the past year.

The report argues the damage came from several major moves which inclided abandoning or slowing investigations, dismissing lawsuits against financial companies, and weakening or pausing consumer protection efforts.

Supporters of the changes argue the CFPB had become too powerful, too aggressive, and too burdensome on financial institutions. They say scaling it back restores balance, reduces regulatory overreach, and prevents unnecessary pressure on banks and lenders.

I never land on the side of big business and yet again we find our selves falling into a deeper philosophical divide about the role of government in financial markets. One side sees strong consumer protection as essential to prevent abuse and maintain fairness. The other believes excessive regulation stifles growth, innovation, and credit availability. The real impact may take years to fully understand we frustrates me know that we are bearing the burden of big business nowadays. Just remember in the US we like to socialize losses and private profits...