Virginia Poverty Law Center (VPLC) has joined a lawsuit against Acting Director Russell Vought to challenge the unlawful dismantling of the Consumer Financial Protection Bureau (CFPB). The lawsuit, filed February 13, 2025, also includes the National Treasury Employees Union, National Consumer Law Center, NAACP, and the CFPB Employee Association.

The next day (2.14.2025), at the judge’s urging, the parties reached a swift agreement to prevent immediate harm. Under the agreement, the CFPB will not delete any CFPB data, lay off staff, or return its funds to the Federal Reserve. While this is crucial in mitigating immediate risks, VPLC and its co-plaintiffs remain committed to seeking broader relief on an expedited schedule.

The CFPB was established by Congress in response to the 2008 financial crisis to oversee financial institutions and protect consumers from predatory practices. Since its creation, the agency has recovered billions of dollars for consumers and has worked to ensure a fair and transparent financial marketplace.

Despite Congress’s constitutional authority to create and fund the CFPB, the president openly declared his intent to “totally eliminate” the agency, and the defendants are acting quickly to execute that directive.

“The CFPB has become an essential partner in VPLC’s efforts to create fair marketplaces and combat predatory practices that harm low-income Virginians,” said Jay Speer, VPLC Executive Director. “This illegal takeover of the CFPB threatens to undo critical consumer protections and harm the very communities we work to protect.”

“This is a tragedy for American consumers, and it is lawless,” said Deepak Gupta, founding principal of Gupta Wessler LLP and former senior counsel at the CFPB. “The Bureau was created by Congress to ensure a fair marketplace and protect the financial security of everyday Americans, helping them avoid fraud, predatory lending, and abusive financial practices. The President and his acting director lack the authority to suspend the agency’s work, defund its operations, or halt enforcement of consumer protection laws. We seek an immediate order restoring the CFPB’s operations and emergency relief to prevent further harm to consumers.”

VPLC remains committed to protecting Virginians from financial exploitation and ensuring the CFPB continues its mission to safeguard consumers nationwide.