NASHVILLE, Tenn. (WTVF) — The White House is aiming to drastically downsize the Consumer Financial Protection Bureau. The agency protects Americans from financial fraud, abuse and deceptive practices.
Employees at the agency started receiving layoff notices last Thursday.
Roughly 1,500 workers were set to be cut -about 90 percent of the workforce.
The effort to downsize the agency -- is part of the administration's wider goal to cut back on waste and increase efficiency.
The CFPB was established after the 2008 great recession, with the goal of protecting consumers from financial fraud abuse and deceptive practices.
It says it's provided $21 billion in financial relief for consumers.
"The Consumer Financial Protection Bureau protects consumers who can't protect themselves when they're engaging in financial transactions"
Eliminating it would leave consumers more vulnerable, according to law professor and former CFPB policy analyst Cathy Lesser Mansfield.
"The average consumer is gonna be in a market that's unregulated and that has always led to consumer abuses."
The agency's chief legal officer said in a court declaration, it found instances in which the Bureau 'pushed well beyond the limits of the law'... and that a slimmed-down agency will de-prioritize supervision over issues including medical debt, student loans and digital payment.
Do you have more information about this story? You can email me at jennifer.kraus@newschannel5.com.
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