A union representing employees from dozens of federal agencies has taken legal action against the acting director of the Consumer Financial Protection Bureau. The union's first lawsuit targets a directive from Russell Vought that ordered CFPB employees to stop nearly all work activities, including rulemaking, investigations, and public communications. Citing a tweet by Elon Musk that read "CFPB RIP," the union argues that the halt on work places employees in an ambiguous status and could precede a broader removal of the bureau’s workforce, thereby undermining CFPB's statutory mission to protect consumers.
In a second lawsuit, the same union accuses the agency of violating the Privacy Act by allowing the Department of Government Efficiency to access sensitive employee records without proper consent. The suit asserts that CFPB is responsible for protecting the personal information it maintains and that its actions in granting access to these records are both unlawful and contrary to established legal standards.
Both lawsuits emerge amid long-standing partisan disputes over the CFPB's role and regulatory authority. Conservatives have frequently criticized the agency since its inception following the 2008 financial crisis, while its supporters highlight its success in recovering billions of dollars for consumers. This legal battle reflects the escalating tensions over federal bureaucracy and the balance between regulatory oversight and administrative authority.