WASHINGTON, D.C. — Newly filed federal court declarations from current and former Consumer Financial Protection Bureau (CFPB) employees reveal a push to significantly scale down or dismantle the agency, raising concerns about the future of consumer protections. The sworn statements, released late Thursday, provide firsthand accounts of efforts to shut down key CFPB operations, cancel contracts, and delete consumer complaint databases—moves that employees say could have lasting effects.
At the center of the disclosures is Adam Martinez, a senior CFPB official, who multiple employees say described plans to move the agency into “wind down mode,” transferring its functions to other agencies and returning CFPB funds.
Rushed contract terminations and data loss risks
Several employees warn that the process has bypassed normal procedures. Charlie Doe, a CFPB contracting officer, describes efforts to rapidly cancel contracts critical to keeping the bureau operational, a move that he says risks “loss of data” and could result in harm that cannot be undone.
Erie Meyer, CFPB’s former Chief Technologist, highlights concerns over data retention and the cancellation of cybersecurity contracts, warning that these actions could lead to the loss of consumer complaint records, potentially in violation of a court order.
Additionally, Adam Scott, the agency’s Director of Digital Services, states that the deletion of the CFPB’s homepage was “not an error” but a decision made by Acting Director Russell Vought. He further asserts that requests to restore the site—consumers’ primary online access point—were denied.
Consumer complaint and enforcement activities disrupted
Employees also warn of major disruptions to CFPB operations that could impact consumers. Matthew Pfaff, Chief of Staff for Consumer Response, states that claims made by Martinez about the continuity of the CFPB’s Consumer Complaint Database are inaccurate, asserting that consumer complaint operations have not remained “intact and operational.”
Lorelei Salas, the bureau’s Supervision Director, describes the decision to halt CFPB’s statutory supervision of financial institutions as “unprecedented,” warning that it could have irreversible consequences for consumer oversight.
Eric Halperin, CFPB’s Enforcement Director, supplements a previous declaration by detailing what he describes as a severe curtailment of enforcement operations.
Concerns over CFPB layoffs and agency closures
The court filings also describe efforts to reduce CFPB staffing and consolidate operations. Drew Doe states that actions have been taken to ensure that the CFPB does “not exist” as an independent entity, describing plans to close agency systems, delete data, fire staff, and reduce the bureau to a single office with limited personnel.
Peyton Diotalevi, National Counsel for the National Treasury Employees Union, documents the mass termination of CFPB employees, stating that the layoffs were occurring even as a motion for a temporary restraining order was being filed to halt them. Diotalevi also cites an automatic response from CFPB Human Resources informing employees that it is working to provide documents regarding their “recent or impending separation.”
Court battle over CFPB’s future
As these developments unfold, the CFPB’s future remains uncertain. Deepak Gupta, in a declaration filed with the court, describes an agreement with the Justice Department to temporarily suspend the cancellation of contracts through an upcoming hearing scheduled for March 3, 2025.
The court’s decision in the coming weeks could determine whether the CFPB continues to operate as an independent consumer protection agency or is significantly restructured.