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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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U.S. Targets Iran’s Missile and Drone Program With Sanctions

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U.S. Targets Iran’s Missile and Drone Program With Sanctions

The United States on Friday announced a flurry of new sanctions intended to increase pressure on Iran’s economy, targeting people and companies in China and Hong Kong that have been helping the Iranian military gain access to supplies and war equipment.

The sanctions came ahead of a major summit between President Trump and China’s leader, Xi Jinping, in Beijing next week. China’s support for Iran has become a flashpoint with the Trump administration, which has been trying to compel independent Chinese refineries to stop purchasing Iranian oil.

China is Iran’s biggest buyer of oil, and the Trump administration has said that it is sponsoring terrorism by propping up the Iranian economy.

The new sanctions are aimed at Iran’s military industrial supply chain, and are intended to make it harder for Iran to secure access to the material it needs to build drones and missiles. In addition to China, the sanctions also target people and companies based in Belarus and the United Arab Emirates.

“Under President Trump’s decisive leadership, we will continue to act to keep America safe and target foreign individuals and companies providing Iran’s military with weapons for use against U.S. forces,” Treasury Secretary Scott Bessent said in a statement.

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The Trump administration has been looking for ways to squeeze Iran’s economy and pressure the Iranian government to reopen the Strait of Hormuz, a conduit for the flow of global oil. Oil tankers have had sporadic access to the critical waterway since the war started earlier this year, and the United States and Iran have been fighting over who should control it.

U.S. warships that have been trying to transit the strait have been attacked by Iranian forces. The United States on Friday fired on and disabled two Iranian-flagged oil tankers as they tried to reach an Iranian port.

The Treasury Department has also imposed sanctions on the Chinese “teapot” refineries this month. The independent refineries are major purchasers of Iranian oil. But China invoked a domestic policy ordering its companies to disregard the sanctions.

Mr. Bessent said earlier this week that he expected Mr. Trump to urge Mr. Xi to use the country’s leverage over Iran to pressure it to allow oil cargo to travel.

“Let’s see if China — let’s see them step up with some diplomacy and get the Iranians to open the strait,” Mr. Bessent told Fox News on Monday.

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General Motors to pay $12.5 million to settle claims that it illegally sold California driver data

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General Motors to pay .5 million to settle claims that it illegally sold California driver data

General Motors has agreed to pay $12.5 million dollars to settle claims that the automaker illegally sold location and driving data of hundreds of thousands of Californians, state officials said Friday.

The settlement is an example of how automakers are facing more scrutiny over allegations that they share driver data with the insurance industry, influencing how much people pay for coverage. California, though, has a law that bars insurers from using driving data to set rates.

“If we get word that a company is illegally collecting, storing or selling consumer data, we won’t hesitate to look under the hood and hold them accountable to the law,” California Atty. Gen. Rob Bonta said in a news conference.

The settlement is the largest California Consumer Privacy Act penalty in the state’s history, Bonta said.

The act gives California consumers the right to request that businesses disclose what data they collect. They can also opt out of the sharing or sale of their personal information and request that businesses delete their data.

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Investigators found that from 2020 to 2024, GM sold driver data, including names, contact information, location data and driving behavior data, to data brokers Verisk Analytics Inc. and LexisNexis Risk Solutions. The data came from a driver’s use of OnStar, which is owned by GM and provides roadside assistance, navigation and other services.

GM said the agreement addresses a product called OnStar Smart Driver that the company discontinued in 2024. The product was meant to help improve people’s driving but faced privacy concerns from consumers. In 2024, GM also ended its partnership with the two data brokers and said it would enhance privacy controls.

“Vehicle connectivity is central to a modern and safe driving experience, which is why we’re committed to being clear and transparent with our customers about our practices and the choices and control they have over their information,” a GM spokesperson said in a statement.

Various district attorneys throughout the state, including in Los Angeles and San Francisco, were involved in the investigation and settlement.

Technology has been playing a bigger role in the auto industry, but the data collected from drivers can reveal personal information about people’s daily habits, including where they drop off their kids and doctor visits.

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The California Privacy Protection Agency in 2023 started investigating the privacy practices of connected cars. As the state was looking into the automakers, the New York Times reported in 2024 that GM was sharing consumer driving behavior with insurance companies. Nationwide, GM reportedly made roughly $20 million from selling data to Verisk and LexisNexis.

The state’s privacy protection agency has taken action against other automakers before. Ford Motor Company was fined $375,703 in March and Honda was fined $632,500 in 2025 for privacy violations.

Under the GM settlement, which still needs court approval, the automaker would delete any driving data the company kept within 180 days and request that the two data brokers do the same. They would also stop selling driving data to consumer reporting agencies for five years and develop a privacy program that includes assessing and mitigating the risks of data collected from OnStar.

California’s settlement with GM came after the Federal Trade Commission in 2025 also took action against the automaker and OnStar for its privacy practices, barring them from disclosing location and driver behavior data to consumer reporting agencies for five years.

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Trump’s Latest Tariff Setback Looms Over China Talks

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Trump’s Latest Tariff Setback Looms Over China Talks

A day after a federal court ruled against President Trump’s latest global tariffs, his administration returned to the drawing board on Friday, trying to preserve its powers to wage economic warfare in time for high-stakes trade talks with China.

The latest legal blow concerned the 10 percent tariff that Mr. Trump imposed in late February on nearly all U.S. imports. The president unveiled that policy as a sort of temporary fix, after the Supreme Court tossed out his initial duties, but a panel of judges once again found that the White House had run afoul of the law.

The result was a familiar set of headaches for Mr. Trump, who has tried repeatedly — and with mixed success — to stretch his authority to tax imports without the express permission of Congress. By Friday, one of the president’s top aides signaled that an appeal was imminent, echoing the president, who told reporters shortly after the ruling that he would simply “do it a different way.”

Technically, the Court of International Trade only declared the president’s across-the-board, 10 percent tariff to be illegal. Otherwise, it did not issue an order forcing the government to stop collecting it from all importers, at least for now. Still, the outcome marked both a political and legal setback for Mr. Trump, who had spent much of the week issuing trade threats against Europe and preparing for talks in China.

Tariffs are expected to be a major topic on the agenda when Mr. Trump travels to Beijing to meet next week with his counterpart, Xi Jinping. Trade experts said the court decision could undercut the president’s leverage. Eswar Prasad, a professor of economics at Cornell University, said the ruling “severely handicapped” the administration’s ability to employ tariffs against foreign nations, leaving Mr. Trump with a “much weaker bargaining hand” when it comes to China.

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“Any threats by Trump to hit China with broader and higher tariffs if Xi doesn’t bend to his will on economic and geopolitical matters now seem like empty bluster rather than credible ultimatums,” he said.

One of the president’s top trade advisers, Jamieson Greer, appeared to brush aside some of those concerns on Friday. During an interview on Fox Business, he criticized the court for ruling against the White House, claiming that some of the judges on the panel were “apparently just hellbent on importing more from China.”

Mr. Greer, who defended the president’s use of trade powers, added that the administration is “confident on appeal we’ll be successful.”

At the heart of the matter is Mr. Trump’s decision to invoke a trade power that no president had ever used. Known as Section 122 of the Trade Act of 1974, it permits the president to impose tariffs up to 15 percent for 150 days, but only in response to strict conditions, including a “balance of payments” crisis.

The term itself reflects a bygone concern from the time the law was adopted, when the U.S. dollar was pegged to gold, creating unique economic risks. But the Trump administration sought to argue that the law still applied today, pointing in part to the country’s persistent trade deficit, a different measurement, which reflects the gap between U.S. imports and exports.

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In the end, a majority of judges on the Court of International Trade found the argument unpersuasive and sided with small businesses and states that had sued. It marked the second time that some of those challengers had prevailed against Mr. Trump, after they convinced the Supreme Court to invalidate his earlier use of emergency powers to impose withering tariffs.

The new decision raised the odds that the administration could soon have to pay back the billions of dollars collected from its 10 percent tariff, on top of the $166 billion that the government already owes to U.S. importers from its last legal defeat. But the fight appeared far from over, and much remained uncertain by Friday — not just for American businesses, which paid the cost to import goods, but for the Trump administration itself.

“President Trump has lawfully used the tariff authorities granted to him by Congress to address our balance of payments crisis,” Kush Desai, a White House spokesman, said in a statement. “The Trump administration is reviewing legal options and maintains confidence in ultimately prevailing.”

For one thing, the court only appeared to bar the collection of the president’s 10 percent tariff for some of the plaintiffs that sued, many legal experts said. That raised the odds that droves of U.S. businesses could soon mobilize and “file a court case” of their own asking for similar relief, said Ted Murphy, a top trade lawyer at the law firm Sidley Austin. He added that he also expected the trade court to pause implementation of its order pending an appeal.

The timing is important to Mr. Trump, who had always envisioned his across-the-board tariff as a stopgap that would allow the government time to prepare a set of more lasting rates using another set of authorities, known as Section 301. But that process was widely expected to take months, since the law requires the government to conduct investigations into other countries’ trade practices before Mr. Trump can apply new duties.

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Those inquiries targeting dozens of countries are well underway, and the president at times has suggested the final rates could be set at new highs. Some experts believe the tariffs imposed using Section 301 could be more legally durable, though the administration could still face lawsuits over his aggressive use of the law.

Michael Lowell, the chair of the global regulatory enforcement group at the law firm Reed Smith, said the White House probably would not have to worry about “a broad attack on that authority.” But, he said, the courts had recently drawn something of a line in the sand, suggesting they would be “very skeptical of the administration looking to the past and finding and repurposing” other powers to advance its trade agenda.

Unlike the president’s other trade gambits, he has successfully applied tariffs in the past using Section 301, including on China. That left some analysts to conclude that Mr. Trump, while blemished, would still retain some leverage ahead of his trip to Beijing next week.

“Unless they have amnesia, China should remember quite vividly how during Trump’s first term, the U.S. imposed multiple rounds of tariffs under Section 301 on China during negotiations,” said Sarah Schuman, a former U.S. trade official who is now managing director at Beacon Global Strategies.

The administration still had multiple options “to increase tariffs on China in pretty short order,” she added.

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Mr. Trump’s trip to China had been scheduled for April, but was delayed because of the war in Iran. U.S. officials have said their goals for the visit include establishing a “board of trade,” which would oversee commerce between the countries in an effort to balance trade and reduce the U.S. trade deficit with China

On Friday, Mr. Greer sketched out a long list of concerns that the administration planned to raise with its Chinese counterparts, from its adherence to past purchase agreements to its approach to artificial intelligence.

“There’s not really a situation where we go, we get China to change the way they govern, the way they manage their economy; that’s all baked into their system,” he said. “But I think there is a world where we find out where we can optimize trade between China and the U.S. to achieve more balance.”

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