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36 Hours After Russell Vought Took Over Consumer Bureau, He Shut Its Operations

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36 Hours After Russell Vought Took Over Consumer Bureau, He Shut Its Operations

The day before Linda Wetzel closed on her retirement home in Southport, N.C., in 2012 — a cozy place where she could open the windows at night and catch an ocean breeze — the bank making the loan surprised her with a fee she hadn’t expected. Ms. Wetzel scoured her mortgage paperwork and couldn’t find the charge disclosed anywhere.

Ms. Wetzel made the payment and then filed an online complaint with the Consumer Financial Protection Bureau. The bank quickly opened an investigation, and a month later, it sent her a $5,600 check.

“My first thought was ‘thank you.’ I was in tears,” she recalled. “That money was a year or two of savings on my mortgage. It was my little nest egg.”

Ms. Wetzel’s refund is a tiny piece of the work the bureau has done since it was created in 2011. It has clawed back $21 billion for consumers. It slashed overdraft fees, reformed the student loan servicing market, transformed mortgage lending rules and forced banks and money transmitters to compensate fraud victims.

It may no longer be able to carry out that work.

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President Trump on Friday appointed Russell Vought, who was confirmed a day earlier to lead the Office of Management and Budget, as the agency’s acting director. Mr. Vought was an author of Project 2025, a conservative blueprint for upending the federal government that called for significant changes, including abolishing the consumer bureau.

In less than 36 hours, Mr. Vought threw the agency into chaos. On Saturday, he ordered the bureau’s 1,700 employees to stop nearly all their work and announced plans to cut off the agency’s funding. Then on Sunday, he closed the bureau’s headquarters for the coming week. Workers who tried to retrieve their laptops from the office were turned away, employees said.

The bureau “has been a woke & weaponized agency against disfavored industries and individuals for a long time,” Mr. Vought wrote Sunday on X. “This must end.”

Created by Congress in the aftermath of the housing crisis that set off the Great Recession, the consumer bureau became one of Wall Street’s most feared regulators, with the power to issue new rules — and penalize companies for breaking them — around mortgages, credit cards, student loans, credit reporting and other areas that affect the financial lives of millions of Americans.

The bureau’s actions made it a lightning rod for criticism from banks and Republican lawmakers — and put it squarely in the Trump administration’s cross hairs.

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The agency’s foes have long called for its elimination, which only Congress has the power to do. Elon Musk, the billionaire leader of a government efficiency team that has created havoc throughout the federal government, posted “CFPB RIP” on his social media platform X on Friday. A few hours earlier, his associates had gained access to the consumer bureau’s headquarters and computer systems.

The National Treasury Employees Union, which represents the bureau’s employees, filed a lawsuit against Mr. Vought on Sunday night. Granting Mr. Musk’s team access to employee records violated the Privacy Act, the 1974 law regulating how the government handles individuals’ personal information, the union said in its complaint, which was filed in federal court in Washington.

Agency workers fear their employment data could be used for online harassment or “to blackmail, threaten or intimidate them,” the complaint said. Workers are also concerned about disclosure of their personal health or financial details, the union added.

The union filed a second lawsuit against the acting director over his efforts to freeze the agency’s work. Mr. Vought’s orders illegally infringe, the union said, on “Congress’s authority to set and fund the missions” of the consumer bureau.

Representatives of the consumer bureau and the budget office did not respond to requests for comment.

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During the first Trump administration, when Republicans controlled both chambers of Congress, lawmakers failed to amass enough votes to abolish the agency. Some have indicated that they would like to try again. Senator Bill Hagerty, a Tennessee Republican who serves on the Senate Banking Committee, called the bureau a “rogue agency” on Sunday on the CBS News program “Face the Nation.”

“It’s been basically a reckless agency that’s been allowed to go way beyond any mandate that I think was originally intended,” Mr. Hagerty said. “It’s time to rein it in.”

Senator Elizabeth Warren, Democrat of Massachusetts, who fought for the agency’s creation and who describes herself as its “mom” on her X biography, has spent the last decade battling attempts to dismantle the consumer bureau.

“President Trump campaigned on helping working families, but Russ Vought just told Wall Street that it’s open season to scam families,” she said Sunday in a written statement. “What Vought is doing is illegal and dangerous, and we will fight back.”

Many of the agency’s actions have directly affected Americans’ pocketbooks. Its rules overhauled the mortgage market, curbing the kinds of subprime loans that set off the housing crisis. Pressure from the bureau led major banks to reduce or eliminate their overdraft fees, and a recently finalized rule would cap most of those fees at $5.

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The agency recently adopted rules to eliminate medical debt from credit reports and limit most credit card late fees to $8 or less per month, but lawsuits have delayed those rules from taking effect.

“It’s striking to me that people’s economic dissatisfaction created the Consumer Financial Protection Bureau, and people’s economic dissatisfaction created Trump,” said Shayak Sarkar, a law professor at University of California, Davis.

Mr. Trump’s team has given priority to attacks on specific agencies — like U.S. Agency for International Development and the consumer bureau — that serve vulnerable populations, Mr. Sarkar said, while throwing “a lot of federal support and cheering” at agencies like Immigration Customs and Enforcement, which has intensified its immigration crackdowns.

While the bureau cannot be shuttered without congressional action, its director has the power to radically alter its approach. During Mr. Trump’s first term, he appointed Mick Mulvaney — then the director of the budget office Mr. Vought now leads — as the bureau’s acting director. Mr. Mulvaney called the agency a “joke” in “a sick, sad kind of way” and sharply curtailed its enforcement actions and rule making work.

The agency’s powers have swung like a pendulum. It moved aggressively when Democrats held the White House but pulled back during Mr. Trump’s first term. Mr. Mulvaney and his Trump-appointed successor, Kathleen Kraninger, put the bureau into a kind of hibernation, gutting rules that would have wiped out much of the payday lending market and slashing the bureau’s enforcement actions.

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But several current agency employees, who spoke confidentially for fear of retribution, said Mr. Vought’s order on Saturday stretched beyond what occurred during the last Trump administration.

His instruction to “cease all supervision and examination activity” caused particular alarm. While other federal agencies — including the Federal Deposit Insurance Corporation, Federal Reserve and Office of the Comptroller of the Currency — also oversee banks, the consumer bureau is the sole regulator for nonbank lenders. Those companies hold a large share of the $13 trillion mortgage market.

Mr. Vought also said he intended to cut off the consumer bureau’s funding, which comes directly from the Federal Reserve, outside the usual congressional appropriations process. The agency’s budget for the 2025 fiscal year calls for around $800 million in annual spending, and the Fed transferred $245 million to the bureau in January to fulfill its latest request.

Mr. Vought wrote on X that he had told the Fed that the bureau would not be taking its next funding draw “because it is not ‘reasonably necessary’ to carry out its duties.”

Adam Levitin, a professor at Georgetown Law who specializes in financial regulation, said on Sunday that Mr. Vought’s orders might be illegal. Some of the federal laws that govern the consumer bureau order it to supervise specific entities, and that work does not appear to be discretionary, he said.

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The acting director “has the ability to seriously hobble the C.F.P.B. through a bunch of slow bleeds, but he’s trying to skip all the necessary steps and just go for an immediate death blow,” Mr. Levitin said. “He may not have the legal ability to actually do that, but I’m not sure how much that’s going to matter. A lot of the way the Trump administration has been dealing with regulatory agencies is just kind of a blitzkrieg tactic, where a key component is creating fear, uncertainty and chaos.”

A rally on Saturday outside the bureau’s headquarters, organized by its staff union, drew a few hundred participants. A Maryland resident, who asked that her name be withheld for fear of retribution from Mr. Trump’s allies, attended with her husband, a federal worker, to support the agency’s employees.

“I don’t think people understand what the C.F.P.B. does,” she said. “The administration said they’re closing it because of fraud, but the bureau’s literal job is to protect people from fraud and junk fees and predatory lenders.”

Ms. Wetzel, the retiree who used her $5,600 refund to replace the floors in her new home, said the quick action on her complaint made her feel empowered.

“It was such a relief to have the government saying what the bank did was wrong, that this is not the rule of law,” she said.

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Podcast industry is divided as AI bots flood the airways with thousands of programs

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Podcast industry is divided as AI bots flood the airways with thousands of programs

Chatty bots are sharing their hot takes through hundreds of thousands of AI-generated podcasts. And the invasion has just begun.

Though their banter can be a bit banal, the AI podcasters’ confidence and research are now arguably better than most people’s.

“We’ve just begun to cross the threshold of voice AI being pretty much indistinguishable from human,” said Alan Cowen, chief executive of Hume AI, a startup specializing in voice technology. “We’re seeing creators use it in all kinds of ways.”

AI can make podcasts sound better and cost less, industry insiders say, but the growing swarm of new competitors entering an already crowded market is disrupting the industry.

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Some podcasters are pushing back, requesting restrictions. Others are already cloning their voices and handing over their podcasts to AI bots.

Popular podcast host Steven Bartlett has used an AI clone to launch a new kind of content aimed at the 13 million followers of his podcast “Diary of a CEO.” On YouTube, his clone narrates “100 CEOs With Steven Bartlett,” which adds AI-generated animation to Bartlett’s cloned voice to tell the life stories of entrepreneurs such as Steve Jobs and Richard Branson.

Erica Mandy, the Redondo Beach-based host of the daily news podcast called “The Newsworthy,” let an AI voice fill in for her earlier this year after she lost her voice from laryngitis and her backup host bailed out.

She fed her script into a text-to-speech model and selected a female AI voice from ElevenLabs to speak for her.

“I still recorded the show with my very hoarse voice, but then put the AI voice over that, telling the audience from the very beginning, I’m sick,” Mandy said.

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Mandy had previously used ElevenLabs for its voice isolation feature, which uses AI to remove ambient noise from interviews.

Her chatbot host elicited mixed responses from listeners. Some asked if she was OK. One fan said she should never do it again. Most weren’t sure what to think.

“A lot of people were like, ‘That was weird,’” Mandy said.

In podcasting, many listeners feel strong bonds to hosts they listen to regularly. The slow encroachment of AI voices for one-off episodes, canned ad reads, sentence replacement in postproduction or translation into multiple languages has sparked anger as well as curiosity from both creators and consumers of the content.

Augmenting or replacing host reads with AI is perceived by many as a breach of trust and as trivializing the human connection listeners have with hosts, said Megan Lazovick, vice president of Edison Research, a podcast research company.

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Jason ⁠Saldanha of PRX, a podcast network that represents human creators such as Ezra Klein, said the tsunami of AI podcasts won’t attract premium ad rates.

“Adding more podcasts in a tyranny of choice environment is not great,” he said. “I’m not interested in devaluing premium.”

Still, platforms such as YouTube and Spotify have introduced features for creators to clone their voice and translate their content into multiple languages to increase reach and revenue. A new generation of voice cloning companies, many with operations in California, offers better emotion, tone, pacing and overall voice quality.

Hume AI, which is based in New York but has a big research team in California, raised $50 million last year and has tens of thousands of creators using its software to generate audiobooks, podcasts, films, voice-overs for videos and dialogue generation in video games.

“We focus our platform on being able to edit content so that you can take in postproduction an existing podcast and regenerate a sentence in the same voice, with the same prosody or emotional intonation using instant cloning,” said company CEO Cowen.

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Some are using the tech to carpet-bomb the market with content.

Los Angeles podcasting studio Inception Point AI has produced its 200,000 podcast episodes, accounting for 1% of all podcasts published on the internet, according to CEO Jeanine Wright.

The podcasts are so cheap to make that they can focus on tiny topics, like local weather, small sports teams, gardening and other niche subjects.

Instead of a studio searching for a specific “hit” podcast idea, it takes just $1 to produce an episode so that they can be profitable with just 25 people listening.

“That means most of the stuff that we make, we have really an unlimited amount of experimentation and creative freedom for what we want to do,” Wright said.

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One of its popular synthetic hosts is Vivian Steele, an AI celebrity gossip columnist with a sassy voice and a sharp tongue. “I am indeed AI-powered — which means I’ve got receipts older than your grandmother’s jewelry box, and a memory sharper than a stiletto heel on marble. No forgetting, no forgiving, and definitely no filter,” the AI discloses itself at the start of the podcast.

“We’ve kind of molded her more towards what the audience wants,” said Katie Brown, chief content officer at Inception Point, who helps design the personalities of the AI podcasters.

Inception Point has built a roster of more than 100 AI personalities whose characteristics, voices and likenesses are crafted for podcast audiences. Its AI hosts include Clare Delish, a cooking guidance expert, and garden enthusiast Nigel Thistledown.

The technology also makes it easy to get podcasts up quickly. Inception has found some success with flash biographies posted promptly in connection to people in the news. It uses AI software to spot a trending personality and create two episodes, complete with promo art and a trailer.

When Charlie Kirk was shot, its AI immediately created two shows called “Charlie Kirk Death” and “Charlie Kirk Manhunt” as a part of the biography series.

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“We were able to create all of that content, each with different angles, pulling from different news sources, and we were able to get that content up within an hour,” Wright said.

Speed is key when it comes to breaking news, so its AI podcasts reached the top of some charts.

“Our content was coming up, really dominating the list of what people were searching for,” she said.

Across Apple and Spotify, Inception Point podcasts have now garnered 400,000 subscribers.

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L.A. County sues oil companies over unplugged oil wells in Inglewood

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L.A. County sues oil companies over unplugged oil wells in Inglewood

Los Angeles County is suing four oil and gas companies for allegedly failing to plug idle oil wells in the large Inglewood Oil Field near Baldwin Hills.

The lawsuit filed Wednesday in Los Angeles Superior Court charges Sentinel Peak Resources California, Freeport-McMoran Oil & Gas, Plains Resources and Chevron U.S.A. with failing to properly clean up at least 227 idle and exhausted wells in the oil field. The wells “continue to leak toxic pollutants into the air, land, and water and present unacceptable dangers to human health, safety, and the environment,” the complaint says.

The lawsuit aims to force the operators to address dangers posed by the unplugged wells. More than a million people live within five miles of the Inglewood oil field.

“We are making it clear to these oil companies that Los Angeles County is done waiting and that we remain unwavering in our commitment to protect residents from the harmful impacts of oil drilling,” said Supervisor Holly Mitchell, whose district includes the oil field, in a statement. “Plugging idle oil and gas wells — so they no longer emit toxins into communities that have been on the front lines of environmental injustice for generations — is not only the right thing to do, it’s the law.”

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Sentinel is the oil field’s current operator, while Freeport-McMoran Oil & Gas, Plains Resources and Chevron U.S.A. were past operators. Energy companies often temporarily stop pumping from a well and leave it idle waiting for market conditions to improve.

In a statement, a representative for Sentinel Peak said the company is aware of the lawsuit and that the “claims are entirely without merit.”

“This suit appears to be an attempt to generate sensationalized publicity rather than adjudicate a legitimate legal matter,” general counsel Erin Gleaton said in an email. “We have full confidence in our position, supported by the facts and our record of regulatory compliance.”

Chevron said it does not comment on pending legal matters. The others did not immediately respond to a request for comment.

State regulations define “idle wells” as wells that have not produced oil or natural gas for 24 consecutive months, and “exhausted wells” as those that yield an average daily production of two barrels of oil or less. California is home to thousands of such wells, according to the California Department of Conservation.

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Idle and exhausted wells can continue to emit hazardous air pollutants such as benzene, as well as a methane, a planet-warming greenhouse gas. Unplugged wells can also leak oil, benzene, chloride, heavy metals and arsenic into groundwater.

Plugging idle and exhausted wells includes removing surface valves and piping, pumping large amounts of cement down the hole and reclaiming the surrounding ground. The process can be expensive, averaging an estimated $923,200 per well in Los Angeles County, according to the California Geologic Energy Management Division, which notes that the costs could fall to taxpayers if the defendants do not take action. This 2023 estimate from CalGEM is about three times higher than other parts of the state due to the complexity of sealing wells and remediating the surface in densely populated urban areas.

The suit seeks a court order requiring the wells to be properly plugged, as well as abatement for the harms caused by their pollution. It seeks civil penalties of up to $2,500 per day for each well that is in violation of the law.

Residents living near oil fields have long reported adverse health impacts such as respiratory, reproductive and cardiovascular issues. In Los Angeles, many of these risks disproportionately affect low-income communities and communities of color.

“The goal of this lawsuit is to force these oil companies to clean up their mess and stop business practices that disproportionately impact people of color living near these oil wells,” County Counsel Dawyn Harrison said in a statement. “My office is determined to achieve environmental justice for communities impacted by these oil wells and to prevent taxpayers from being stuck with a huge cleanup bill.”

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The lawsuit is part of L.A. County’s larger effort to phase out oil drilling, including a high-profile ordinance that sought to ban new oil wells and even require existing ones to stop production within 20 years. Oil companies successfully challenged it and it was blocked in 2024.

Rita Kampalath, the county’s chief sustainability officer, said the county remains “dedicated to moving toward a fossil fuel-free L.A. County.”

“This lawsuit demonstrates the County’s commitment to realizing our sustainability goals by addressing the impacts of the fossil fuel industry on front line communities and the environment,” Kampalath said.

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Instacart is charging different prices to different customers in a dangerous AI experiment, report says

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Instacart is charging different prices to different customers in a dangerous AI experiment, report says

The grocery delivery service Instacart is using artificial intelligence to experiment with prices and charge some shoppers more than others for the same items, a new study found.

The study from nonprofits Groundwork Collaborative and Consumer Reports followed more than 400 shoppers in four cities and found that Instacart sometimes offered as many as five different sales prices for the exact same item, at the same store and on the same day.

The average difference between the highest price and lowest price on the same item was 13%, but some participants in the study saw prices that were 23% higher than those offered to other shoppers.

The varying prices are unfair to consumers and exacerbate a grocery affordability crisis that regular Americans are already struggling to cope with, said Lindsey Owens, executive director of Groundwork Collaborative.

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“In my own view, Instacart should close the lab,” Owens said. “American grocery shoppers aren’t guinea pigs, and they should be able to expect a fair price when they’re shopping.”

The study found that an individual shopper on Instacart could theoretically spend as much as $1,200 more on groceries in one year if they had to deal with the kind of price differences observed in the pricing experiments.

At a Safeway supermarket in Washington, D.C., a dozen Lucerne eggs sold for $3.99, $4.28, $4.59, $4.69, and $4.79 on Instacart, depending on the shopper, the study showed.

At a Safeway in Seattle, a box of 10 Clif Chocolate Chip Energy bars sold for $19.43, $19.99, and $21.99 on Instacart.

Instacart likely began experimenting with prices in 2022, when the platform acquired the artificial intelligence company Eversight. Instacart now advertises Eversight’s pricing software to its retail partners, claiming that the price experimentation is negligible to consumers but could increase store revenue by up to 3%.

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“These limited, short-term, and randomized tests help retail partners learn what matters most to consumers and how to keep essential items affordable,” an Instacart spokesperson said in a statement to The Times. “The tests are never based on personal or behavioral characteristics.”

Instacart said the price changes are not the result of dynamic pricing, like that used for airline tickets and ride-hailing, because the prices never change in real time.

But the Groundwork Collaborative study found that nearly three-quarters of grocery items bought at the same time and from the same store had varying price tags.

The artificial intelligence software helps Instacart and grocers “determine exactly how much you’re willing to pay, adding up to a lot more profits for them and a much higher annual grocery bill for you,” Owens said.

The study focused on 437 shoppers in-store and online in North Canton, Ohio; Saint Paul, Minn.; Washington, D.C., and Seattle.

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Instacart shares were down more than 5% in midday trading on Wednesday and have risen 1% this year.

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