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CFPB workers protest Vought's takeover
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Union plans legal action to protect sensitive data
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Vought's Project 2025 aimed to dismantle CFPB
(New throughout, adds details on DOGE IT access, background and
statement from Democratic lawmakers)
By Douglas Gillison
WASHINGTON, Feb 8 (Reuters) -
Workers at the U.S. Consumer Finance Protection Bureau
demonstrated outside its headquarters on Saturday protesting
Elon Musk's assault on the agency.
The union said Musk's DOGE agency had improper access to
the bureau's systems which could potentially jeopardize
sensitive data and also said the CFPB could regulate a business
Musk has indicated plans to enter.
The bureau's website has been malfunctioning since late
on Friday, around the time Musk posted a message on X that said:
"CFPB RIP."
About 100 people attended Saturday's protest, 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.
The demonstration, organized 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 Department of Government Efficiency has quickly
moved to remake the federal government, gaining access to
confidential data and drawing legal challenges from labor groups
and state attorneys general. Early Saturday,
a federal judge temporarily blocked
Musk's team from accessing government systems used to
process trillions of dollars in payments, citing a risk that
sensitive information could be improperly disclosed.
On Friday, Trump named newly confirmed
Office of Management and Budget 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.
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
criticized 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 $6 billion to consumers while imposing
a further $3.2 billion in fines, according to the Consumer
Federation of America.
These included a $3.7 billion
settlement with Wells Fargo ( WFC )
, over abusive consumer practices, the agency's
largest-ever enforcement action, as well as actions against Bank
of America ( BAC ), Citibank, Goldman Sachs ( GS ) and Apple ( AAPL ).
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."