Elon Musk’s DOGE team targets the Consumer Financial Protection Bureau

DOGE—the controversial efficiency team being led by Tesla founder and CEO Elon Musk— is busy stopping work and funding at the Consumer Financial Protection Bureau (CFPB). 

The details: According to a Bloomberg report, the CFPB shutdown has been in play for a few days, raising more concerns about the Department of Government Efficiency’s moves and power with the support of the Trump administration.

• Last week, DOGE staffers reportedly arrived at CFPB’s Washington headquarters, getting what was described as “read-only” access to a variety of documents, including internal personnel files, procurement records, and budgeting and financial data.

• Late Friday, staff members with the efficiency group were allowed access to all the Consumer Financial Protection Bureau’s data systems, including sensitive bank records, according to emails viewed by Bloomberg. 

• DOGE’s wider access to more sensitive CFPB information was granted by Russell Vought, who heads the White House’s Office of Management and Budget.  

The move to shut down CFPB has raised additional concerns about Musk being so deeply entrenched in governmental affairs, given the recent announcement that his social media platform, X, has struck a deal with Visa to launch a peer-to-peer digital payment system.      

Between the lines: News of the CFPB shutdown and DOGE’s expanded access to information within the consumer watchdog group is the latest in a series of events centered around the independent government agency, which has drawn a mix of praise and criticism since being set up in the wake of the 2008 financial crisis.   

• Republicans and the financial industry have long criticized the CFPB for being too aggressive with its regulatory measures and having little accountability for its actions.

• Supporters of the Consumer Financial Protection Bureau point to the organization’s efforts to protect consumers from corporate financial abuses.

• With CFPB’s headquarters now closed, the fate of the agency will likely be played out in court, following lawsuits filed against Vought, the acting director of CFPB, by a union representing federal employees.        

A November 2024 survey by Data for Progress found that public support for the CFPB is relatively the same across party lines, with 11% of all voters “strongly approving” of the bureau and 29% “somewhat approving.”  Of those surveyed, 48% of the respondents did not have an initial opinion of the CFPB.   

Bottom line: A judge could weigh in on the move to shut down the Consumer Financial Protection Bureau in a matter of days. And for dealers—this shake-up could have major implications. The CFPB has been a thorn in the side of auto lenders for years, cracking down on lending practices and hidden fees. Without the agency, the industry could see fewer regulatory hurdles—but also more uncertainty if legal battles drag on.

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