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A federal judge in Washington temporarily ordered The Trump administration to interrupt efforts to dismantle the Consumer Financial Protection Office (CFPB) on Friday, prohibiting managers from dismissing staff, deleting data or emptying their reserve funds.
The decision came in response to a union trial, which alleged that the Trump administration planned to widen the CFPB in dismissing 95% of its workers while canceling the lease on its headquarters of Washington, DC. In the event of success, mass layoffs would have left only the skeleton of an agency responsible for monitoring the way in which large banks and other financial service companies such as salary lenders and credit offices manage customers.
The CFPB is currently closed after the acting director, Russell Vought, ordered the staff to stop practically all the work and stay at the office of the office this week. He had also started dismiss staff and Cancel contracts with sellers and expert witnesses.
Administration officials were opened on their objective of eliminating the agency: after the members of its Doge team arrived at its headquarters from its headquarters last week, billionaire Elon Musk published, “RIP CFPB” , while President Donald Trump Tell to journalists Tuesday, it was “very important to get rid”.
“It was also a waste,” he said. “There was a bad group of people who led him. … It was a vicious group of people. They destroyed many people. »»
The temporary ordinance of the main judge Amy Berman Jackson of the American district court of the Columbia district will not raise Vought’s work stoppage. But the complainants, who include a federal union of employees as well as non -profit organizations that work with the CFPB, nevertheless celebrated development.
“Deleting this critical agency would massively increase fraud, the scourge that Musk is aimed at reducing, as well as supercharged scams, excess costs and matching accusations and scams,” said Lisa Gilbert, co-president of the group progressive group. whose lawyers represented some of the complainants. “Today, a judge has interrupted the illegal decision of the administration to stop the critical work of the CFPB.”
The trial, initially filed Thursday, argued that mass layoffs would leave the office unable to perform its basic functions required by law. In a file that accompanies him, the former agency -in -chief technologist also warned that the deletion of his internal data was likely to injure his ability to regulate financial institutions and help consumers.
“Trump and Vought’s actions to deactivate the CFPB have already caused massive confusion and imposed significant and irreparable damage to consumers across the country,” said the trial. “In the absence of immediate relief, the defendants will continue to upset the lives of countless civil servants.”
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