Elon Musk’s cost-cutting initiative has expanded to the Consumer Financial Protection Bureau (CFPB), as representatives from his team have reportedly gained control over critical internal systems. According to sources familiar with the situation, Musk’s team has accessed the agency’s human resources, procurement, and finance systems, and even seized control of its social media accounts, locking out career staff.
The CFPB’s homepage displayed an error message late Friday, suggesting disruption within its online systems. In recent weeks, Musk has expressed strong opposition to the CFPB, the federal agency tasked with consumer protection in the financial sector. In late November, Musk called for the bureau’s elimination, posting on his social media platform X, “Delete CFPB,” followed by a post on Friday that read, “CFPB RIP.” It remains unclear whether Musk’s actions will result in changes to the agency’s staffing or operations.
The move is being led by three key deputies from Musk’s Department of Government Efficiency (DOGE): Chris Young, Nikhil Rajpal, and Gavin Kliger. These individuals were added to the CFPB’s internal directory on Friday, according to the union representing CFPB employees, the National Treasury Employees Union (NTEU) 335. The union quickly condemned the development, calling it an attack on union workers and a move to undermine the agency’s regulatory power over financial institutions like auto lenders and payment providers, including Musk’s own Tesla.
The union expressed heightened concerns over the potential exposure of sensitive data, given the CFPB’s role in overseeing a wide range of financial transactions and maintaining confidential records related to both consumers and businesses. The union’s updated statement warned that such data could be used inappropriately under the current leadership.
The actions of Musk’s team have sparked fears that he may seek to dismantle the CFPB, mirroring his efforts at other government agencies, including the Education Department and the U.S. Agency for International Development (USAID). A federal judge recently halted changes at USAID, further intensifying speculation about Musk’s intentions.
The CFPB and representatives for DOGE did not respond to requests for comment. Earlier this week, Treasury Secretary Scott Bessent was confirmed as the acting director of the CFPB following the dismissal of Rohit Chopra, the agency’s former head. Upon taking office, Bessent instructed staff to halt all work unless specifically authorized or required by law. This directive reportedly included suspending any enforcement actions and investigations.
The CFPB has long faced criticism from Republicans, the banking sector, and some figures in Silicon Valley due to its investigations and enforcement actions against financial institutions. Notable cases include a $3.7 billion settlement with Wells Fargo in 2022 for mistreating customers, a $15 million fine against Equifax for credit reporting errors, and a lawsuit against Capital One over misleading customer claims regarding savings account interest rates. The bureau has also fined Apple and Goldman Sachs $89 million for mishandling customer transaction disputes.
Since its establishment after the 2008 financial crisis, the CFPB has returned more than $17 billion to consumers harmed by financial firms. Its oversight extends to major companies like Meta, which is under scrutiny for potential misuse of financial data, and digital payment platforms such as Apple Pay and Google Pay. Musk’s company, X, is working with Visa to launch “X Money,” a payment system that could soon fall under the CFPB’s jurisdiction.
While former President Donald Trump’s administration sought to dismantle the CFPB, with acting director Mick Mulvaney calling it a “sick sad joke,” recent support from prominent venture capitalists, including Marc Andreessen, has amplified calls for the agency’s elimination. Andreessen, a known supporter of Trump and advisor to Musk, has been vocal in his belief that the CFPB has been a hindrance to financial institutions.
As Musk continues his push to reshape federal oversight, the future of the CFPB remains uncertain, with its power and influence now hanging in the balance.
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