US consumer finance watchdog workers protest Musk’s Doge

Washington — Workers at the US Consumer Finance Protection Bureau (CFPB) protested against Elon Musk’s assault on the agency on Saturday, expressing concern over his access to federal data and the billionaire’s potential conflicts of interest.

The bureau’s website has been malfunctioning since late on Friday, about the time Musk posted a message on his X platform that said: “CFPB RIP.”

The union representing the consumer watchdog’s employees said Musk's department of government efficiency (Doge) agency had improper access to the bureau’s systems, potentially jeopardising sensitive data and that the CFPB may regulate a business Musk has indicated he plans to enter.

About 100 people attended Saturday’s protest outside the agency headquarters, chanting slogans and holding placards that accused Musk and President Donald Trump of subverting democracy. The protesters drew honks of support from passing motorists near the White House.

On Friday, Trump named newly confirmed Office of Management and Budget (OMB) director Russell Vought as the acting CFPB director, according to the OMB. Vought is a longtime budget hawk and architect of the right-wing policy manifesto known as Project 2025, which called for the CFPB’s abolition.

On Saturday Vought told CFPB staff to stop pending their investigations and supervisory activity of banks, the Washington Post reported.

In addition, Vought said in letter to Jerome Powell, the chair of the Federal Reserve, that CFPB is requesting no funds for the third quarter of the year, RealClearPolitics.com reported. It quoted Vought as saying current funds of more than $711m “are, in fact, excessive” to carry out its authorities in a manner consistent with public interest.

A spokesperson for Vought did not immediately respond to a request for comment.

The demonstration, organised by a union chapter representing CFPB staff, came a day after that union said Doge representatives had gained improper access to the agency’s computer systems, according to a statement on National Treasury Employees Union 335’s website.

According to a person with knowledge of the situation on Saturday, Doge representatives have received administrative-level access to all of the CFPB’s IT systems.

Musk's Doge has quickly moved to remake the federal government, gaining access to confidential data and drawing legal challenges from labour groups and state attorneys-general. A federal judge temporarily blocked Musk’s team on Saturday from accessing government systems used to process trillions of dollars in payments, citing a risk that sensitive information could be improperly disclosed.

Congress created the CFPB in 2010 after the global financial crisis. The bureau was charged with policing and regulating the consumer finance sector, which originated the toxic financial products underlying the crash. Republicans have criticised the agency as being unaccountable and exceeding its legal authority.

The agency’s investigations, supervisory activities and collection of consumer complaints generate large amounts of confidential information.

In a Friday statement, the union noted that Musk’s X and Visa were partnering in an effort to offer direct payment services to consumers. The CFPB is the primary federal supervisory regulator tasked with consumer financial protection for larger nonbank participants, according to the Congressional Research Service.

Under former president Joe Biden’s administration, the agency returned more than $6bn to consumers while imposing a further $3.2bn in fines, according to the Consumer Federation of America.

These included a $3.7bn settlement with Wells Fargo, over abusive consumer practices, the agency’s largest-ever enforcement action, as well as actions against Bank of America, Citibank, Goldman Sachs and Apple.

Musk and the CFPB did not immediately respond to a request for comment. The White House did not respond to detailed queries about developments. Representatives for Visa and X did not immediately respond to requests for comment.

In a statement, Elizabeth Warren, the top Democrat on the Senate Banking Committee who helped create the CFPB, said Congress had created the agency and that no-one else, “not the president, not Elon Musk, not Russ Vought — can destroy it.

Reuters