President Barack Obama (with help from Congress) launched the Consumer Financial Protection Bureau as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The goal? To protect consumers from scams, deceptive practices, fraud, and abuse from the financial markets.
More than 14 years after opening, the CFPB is in danger of shutting down. In February 2025, President Donald Trump ordered that the bureau’s work be stopped and announced mass layoffs.
A Washington, DC, federal judge ordered a halt to the firings, so remaining jobs are safe for now. But with the future of the CFPB cloudy, now is a good time to protect yourself from financial scams and fraudsters. As a Fed, you should get into the habit of keeping an eye on your Thrift Savings Plan, credit and debit cards, bank accounts, and other investment vehicles.
Potentially Fewer Consumer Protections
The CFPB’s job is to oversee consumer finance laws. The bureau’s tasks include:
- Issuing refunds to those harmed by financial institutions
- Arranging debt relief for qualified borrowers
- Imposing fines on institutions that flout the rules
- Ensuring that credit reports are accurate and remain private
Critics claim that the CFPB lacks accountability and implements troublesome regulations. However, advocates point out that the agency does hold banks and other institutions accountable while protecting consumer interests.
Advocates suggest that a lack of CFPB protection could also expose consumers applying for home or auto loans to artificial intelligence algorithms. While such algorithms can offer valuable information to lenders, they could also be biased or discriminatory.
Additionally, if you’re a Fed facing financial hardship, a potential CFPB shutdown might mean higher fees on your credit cards and loans. Meanwhile, the agency’s complaint resolution services could go away, leaving you without recourse in the event of unfair practices. This might lead to a higher degree of institutional financial abuse.
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How to Protect Yourself
One important step involves good financial hygiene. Keep current with your liquid assets and investments while avoiding potential financial scams.
Other good financial hygiene practices include:
- Keeping count of your credit card charges
- Changing the settings on your bank’s daily transaction amounts
- Freezing your credit files to prevent access to your good credit
- Transferring money received by banking apps immediately into your bank account
Furthermore, to avoid potential fraud or scams, consider the following:
- Ensure you use different, strong passwords for each account
- Be suspicious of unsolicited financial-oriented emails, text messages or phone calls
- Avoid clicking on website links in dubious emails or text messages
- Set up fraud alerts on your credit files, credit cards, and bank accounts
- Guard your personal information; don’t release bank account or Social Security numbers
Another way to protect yourself is to seek legitimate financial guidance from a CERTIFIED FINANCIAL PLANNER™, such as those with Serving Those Who Serve. Working with an experienced CFP™ can help protect you and your assets while being proactive with your current and future financial planning.
Remaining Calm Amid the Confusion
The potential CPFB closure is alarming news. In addition to impacting many Feds and the public, the shutdown could decrease consumer protections and increase vulnerabilities to financial fraud, scams, and abuse.
In the current confusing environment, take the steps necessary to protect your government benefits and additional cash assets. Contact the Fed-focused CPFs™ at Serving Those Who Serve for further advice and assistance. These experts are ready to help you protect and grow your investments.
For your no-obligation consultation, visit the website at stwserve.com or email [email protected].
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
