News from the people’s perspective

Consumer Financial Watchdog Feds Bite Back Against Trump and Musk Shutdown

Hundreds of Federal Employees outside Consumer Financial Protection Bureau were locked out of their offices on Monday by Elon Musk who took over the agency with Trump’s consent. Photo: DBMediaGroup/J. Zangas

Washington DC—Hundreds of angry Federal workers from the Consumer Financial Protection Bureau (CFPB), their union representatives of the National Treasury Employees Union (NTEU) 335, and supporters rallied on Monday afternoon after DOGE employees associated with Billionaire Elon Musk locked them out of their offices and took control of their official government website and computer networks. The website remained dark as of Monday night.

An email sent to CFPB Federal workers ordered them not to go into work and to cease operations for the rest of the week, effective Monday, February 10.

The Federal employees and NTEU 335 first rallied on Saturday, February 8, over the Friday afternoon unauthorized takeover of their offices and shutdown of their website. The CFPB hosts a government website with a portal through which consumers may seek financial remedies against shady financial business loans, mortgages, and rip-offs. The website also processes millions of consumer financial complaints annually and since 2011 has given 29 million consumers monetary resolution to those complaints.

The CFPB was authorized by an act of Congress and signed into law by President Barack Obama in 2010. It was part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. which was the Congressional response to the 2007-8 financial meltdown. It is an independent agency and falls under the purview of the Federal Reserve.

Constitutionally the Executive Branch has no authority to takeover or to deconstruct an independent agency created by Congress as that would violate the separation of powers as provided in Article I, Section 1 of the Constitution.

The Executive branch must also adhere to Court orders over its conduct with respect to the other branches of government as provided in the bedrock Supreme Court ruling in Marbury v. Madison in 1803. This landmark SCOTUS decision established the principle of Judicial review and helped define the boundary between the constitutionally separate executive and judicial branches of the Federal Government. In effect the Executive branch must obey Court rulings and adhere to Court orders.

But the Trump and Musk DOGE team has so far not obeyed US District Court rulings or it is delaying implementation of their Court orders. For example the Executive branch has so far failed to obey Senior US District Court Judge John McConnell injunction in case of 23 States’ Attorney General v. Beset, the US Treasury suit in which the US District Court of Providence, Massachusetts ruled that the US Treasury must immediately resume payments to through the Bureau of Financial Services to payees.

The takeover and shutdown the CFPB is certain to be challenged in the US District Court of the Washington DC District. This will be yet another US District Court case challenging the Executive branch power grab of Federal agencies. There are multiple ongoing cases that already have been triggered by Trump and his government reform czar, Elon Musk’s agency shutdowns. Other cases involve suits filed on behalf of the US Agency for International Development (USAID), created by Congress in 1961; the Department of Labor, created by Congress in 1913; Department of Treasury, in existence since 1789; the FBI, and Office of Personnel Management. These government agencies have been infiltrated by DOGE ‘special government employees’ who coercively removed Federal employees, locked them out of their offices with little or no warning, and then accessed their private identifiable information (PII) as well as the PII of American consumers.

Since its creation in 2011, the CFPB has refunded over $22 billion to consumers ripped off by corporate junk fees, unscrupulous lenders, mortgage company junk fees, excessive credit card interest rates and fees, which have trapped consumers in unfair “fine print” contract agreements.

Angered by the continuing and escalating work stoppages and agency shutdowns across Federal agencies, a Democratic Congressional delegation met outside the CFPB Monday night to condemn President Trump and Elon Musk for the latest agency takeover and shutdown.

The Monday night rally included key Democratic lawmakers such as Senator Elizabeth Warren, Representative Maxine Waters, and Representative Ayanna Pressley.

Senator Warren, who helped create the CFPB, questioned who was actually running the country, Trump or Musk. “Donald Trump ran his campaign on lowering costs for working families. Now he and his co-president, Elon Musk, have tried to shut down the agency that delivered $21 billion to hard working families…and Trump and Musk just want to take that agency away.”

There has been rallies each day last week outside other departments and agencies;
USAID on Monday, US Treasury on Tuesday, Department of Labor on Wednesday, Department of Education on Thursday as well as the US Capitol on behalf of USAID, and on Friday at NOAA.

On Sunday FETU 335 filed a lawsuit against the Trump administration over the separation of powers aspect of the constitution. “By ordering employees of the Consumer Financial Protection Bureau to stop work, the administration has unlawfully trampled the power of Congress to create a federal agency that it deemed necessary to protecting American consumers,” the FTEU 335 wrote in a press release.