Less than two months ago, the Consumer Financial Protection Office was pumping demands against some of the world’s largest companies, demanding JPMorgan Chase & Co., Bank of America Corp. and Walmart Inc. in a single week. On Monday, the agency headquarters were closed, employees were told that they worked from home and their website carried a broken link.

After the Trump administration quickly dislodged the agency that was created after the great financial crisis, the questions are turning on the impact on banks, credit card companies, loan administrators and non -banking financial technology companies It has regulatory authority to supervise.

Americans have more than $ 12.5 billion in mortgage debt and $ 1.17 billion in credit card balances at the end of September, whose supervision is now uncertain.

“It backs down the ability to enforce all the protections that Congress established to ensure that we do not have another housing crisis,” said Julie Margetta Morgan, former associate director of research, monitoring and regulations in the CFPB during the Biden. administration. “The actions during the last week raise serious questions not only for consumers but also in the industry about how they can proceed.”

The movement issues uncertainty about its supervision of banks, fintechs and payment companies. The future supervision of the financial data of the consumers of Google and Meta Platforms Inc. by Alphabet Inc. is in question together with the next steps on the rules of the Biden era related to medical debt and purchase now, pay later loans .

The White House said in a statement on Monday that the Consumer Guardian dog “has worked for a long time as another armed and armed bureaucracy arm” and the interim director Russell Vought announced during the weekend that the agency “will not be taking its next raffle of not appropriate funds. “

CFPB employees have been ordered to change application priorities and stop outside communication. Supervision also stops, actions that Margetta Morgan said that it leaves consumers unprotected.

“Those are the first lines of defense against scams, fraud and predatory behavior,” he said. It is a “green light” for bad actors in the industry “to create their fraudulent and predatory activities.”

The consumer banker association applauded the movement to “restart” the CFPB, saying that it will guarantee strong consumer protection while restoring credibility.

Gus Galá, monness analyst, Crespi, Hardt & Co. Inc. said in a note to customers that the changes in the CFPB are “a wind of the probable feeling tail for Fintechs”, with the actions that suggest less friction that they could Promote this dynamic in the short term.

Another former official who spent almost a decade at the agency said in a blog that the regulatory vacuum could also favor large banks and non -banks about community banks and credit cooperatives.

“Without the CFPB, there would be no one watching these banks,” said David Silberman, former associate director of research, markets and regulations in the CFPB in the position. “On the contrary, community banks and credit cooperatives would continue to be subject to compliance exams and application actions of their prudential regulators, which would continue to have the legal duty to monitor compliance with institutions within their jurisdiction.”

The legislators, including Senator Elizabeth Warren, requested a demonstration on Monday outside the desired headquarters of the agency to “demand answers regarding the illegal acquisition of CFPB of Elon Musk.”

Days before, Musk had published an image of a tombstone following the message “CFPB RIP”.

Photo: The headquarters of the United States Consumer Financial Protection Office (CFPB) in Washington, DC. Photographer: Al Drago/Bloomberg

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