CFPB Enforcement Chief Quits, Drops Bombshell on Trump's "Attack"

CFPB Enforcement Lead Resigns, Slams ‘Attack’ on Core Mission in Departure Email

In a significant development, Cara Petersen, the acting enforcement director of the Consumer Financial Protection Bureau (CFPB), has resigned from her position. Her departure was marked by a scathing email to colleagues, where she criticized what she described as an “attack” on the agency's core mission under the current administration.

Petersen's resignation comes amid growing concerns about the future of the CFPB, an agency established in the wake of the 2008 global financial crisis to serve as a banking watchdog. Her email, obtained by CNN, paints a picture of an agency struggling to fulfill its mandate.

"I have served under every Director and Acting Director in the Bureau’s history and never before have I seen the ability to perform our core mission so under attack," Petersen wrote. "It is clear that the Bureau’s current leadership has no intention to enforce the law in any meaningful way."

Here are some key takeaways from this developing story:

• Petersen's Harsh Criticism: Her email explicitly accuses the agency's leadership of failing to enforce consumer protection laws effectively.
• Agency in Turmoil: The CFPB has faced significant challenges since the change in administration, including attempts to dismantle its operations.
• Dismantling Efforts: There have been mass layoff attempts and abrupt dismissals of cases against companies accused of harming consumers.

The CFPB, a brainchild of then-Professor Elizabeth Warren (now a Democratic senator from Massachusetts), was established as part of the Dodd-Frank Act in 2010. This landmark legislation aimed to address the vulnerabilities in the financial system that led to the 2008 crisis.

The agency's mission is to ensure fairness in the financial marketplace for consumers. According to the CFPB, as of January 2025, it has delivered $19.7 billion in consumer relief since its creation, benefiting 195 million people.

However, recent actions have raised questions about the agency's commitment to its core mission. This year, the CFPB abruptly dropped cases against several companies, including Capital One, Rocket Homes, and a unit of Warren Buffett’s Berkshire Hathaway. These companies had previously been accused of engaging in practices that harmed consumers.

Further complicating matters, less than two weeks into Trump’s second term, Rohit Chopra, the CFPB director appointed by then-President Joe Biden in 2021, was fired. Since February, the agency's new leadership has been reviewing activities and staffing, according to Mark Paoletta, the agency’s chief legal officer.

Paoletta has argued that the CFPB, under previous administrations, "pushed well beyond the limits of the law" and "engaged in intrusive and wasteful fishing expeditions."

The attempts to reshape the CFPB have faced legal challenges. A federal judge previously halted mass layoffs at the agency, and the case is currently under consideration by an appellate court.

One anonymous CFPB staffer described a sense of frustration and inaction within the agency, stating, "It’s been very frustrating to have active investigations and litigations dropped, as well as negotiated settlements… We have to be ‘work-ready,’ but there is very little work. I’ve maxed out the work I can do."

Petersen's resignation is a significant blow to the CFPB and raises serious questions about its future effectiveness. It underscores the ongoing political battles surrounding consumer protection and the role of government oversight in the financial industry.

The departure of a key figure like Petersen, coupled with the internal strife and external pressures facing the CFPB, suggests a challenging road ahead for the agency and its ability to safeguard the interests of American consumers. Only time will tell what the future holds, but one thing is certain: the debate over the CFPB's role and purpose is far from over.

Source: https://edition.cnn.com/2025/06/11/business/cfpb-enforcement-official-resignation