It's at least a symbolic victory for the agency's defenders
Key Points
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A federal judge granted apreliminary injunctionblocking efforts to shut down the CFPB.
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The court found that Trump administration officials wereactively trying to eliminate the agency.
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The ruling is seen as a major victory forconsumer advocates and agency employees.
A federal judge has granted a preliminary injunction halting what plaintiffs described as a coordinated effort by theTrump administrationto dismantle theConsumer Financial Protection Bureau (CFPB), the agency created to protect Americans from abusive financial practices.
The lawsuit, brought by theNational Treasury Employees Union (NTEU),Public Citizen Litigation Group, andGupta Wessler LLP, accuses the administration specificallyActing CFPB Director Russell Vought of attempting to illegally shut down the agency in direct violation of federal law.
In a sweeping112-page opinion, the judge sided with the plaintiffs, concluding that the administrations actions were aimed ateliminating the agency entirely, and that the plaintiffs are likely to succeed in proving that such actions are unlawful.
A "hurried effort"
The courts opinion described a hurried effort to dismantle the CFPB, including:
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Firing probationary and term-limited employees without cause
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Cutting off agency funding
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Terminating contracts
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Closing CFPB offices
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Implementing areduction in force (RIF)to lay off remaining staff
These actions were taken in complete disregard for the decision Congress made 15 years ago, the court wrote, referencing the CFPBs founding in the wake of the2008 financial crisis.
Advocates applaud the ruling
Dismantling the CFPB would have devastating consequences for consumers across the country, saidWendy Liu, an attorney withPublic Citizen Litigation Group. The courts order is a crucial step toward preserving the agency and blocking the Trump administrations illegal attempt to shutter it.
The lawsuits plaintiffs include a coalition ofconsumer advocacy organizations, including theNational Consumer Law Center,NAACP,Virginia Poverty Law Center, theCFPB Employee Association, and individual plaintiffTed Steege.
Background: A Decade of Consumer Protection
The CFPB was created by Congress in 2010 as part of theDodd-Frank Actin response to the mortgage and banking crises. Since then, the agency has returnedbillions of dollarsto consumers and cracked down onpredatory lending, abusive debt collection, and deceptive financial products.
Critics of the Trump administration say its recent actions violate both theseparation of powersandCongresss intent to maintain a strong consumer watchdog.
The case is ongoing, but Fridays ruling is a major legal and symbolic win for those fighting to preserve the CFPBs mission.
Posted: 2025-03-28 21:48:28
