Judge Halts CFPB Action After Alleged Plans to Delete Database.
In a significant development, a federal judge in Washington, D.C., has ordered the Consumer Financial Protection Bureau (CFPB) to halt its plans to delete a database containing sensitive financial information. The decision, issued on February 14, 2025, came after Erie Meyer, the agency’s former chief technologist, raised concerns about the Trump administration’s alleged plans to remove the database. The database includes supervisory records, enforcement actions, consumer complaints, and personal consumer information.
Judge Amy Berman Jackson’s ruling temporarily blocks the CFPB from deleting data and terminating additional staff. Meyer’s declaration highlighted that the deletion of the data would result in the immediate and irrevocable loss of information essential to the agency’s core mission. The judge also ordered the Trump administration to delay any further staff terminations or fund transfers from the agency.
The CFPB, established after the 2008 financial crisis, has been a target of the Trump administration’s efforts to reshape the federal workforce. Acting Director Russell Vought announced that the CFPB would not be taking its next draw of unappropriated funding and ordered staff to halt routine supervisory activities. This week, the administration fired roughly 200 CFPB staffers, with more expected to be let go.
The National Treasury Employees Union, representing CFPB employees, filed a lawsuit to prevent the Trump administration from taking additional actions against the agency. The union argued that the administration’s actions violated the Privacy Act and were unlawful. Judge Jackson’s ruling provides a temporary reprieve for CFPB employees, who have been bracing for mass layoffs.
The CFPB’s former director, Rohit Chopra, had taken aggressive actions on behalf of consumers, including suing major banks and companies for consumer protection violations. The agency’s work has been crucial in protecting consumers and ensuring financial institutions comply with federal laws. The judge’s decision to halt the CFPB’s actions underscores the importance of preserving the agency’s data and maintaining its regulatory functions.
As the legal battle continues, the future of the CFPB and its ability to protect consumers remains uncertain. The outcome of this case will have significant implications for consumer rights and financial regulation in the United States.
