Trump Administration Proposes Massive Cuts to Consumer Watchdog Agency

Experts warn the cuts could make it harder for consumers to resolve credit report errors and other financial issues.

Apr. 6, 2026 at 10:48pm

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A warm, cinematic painting of a lone desk lamp casting long shadows across an empty office desk, conveying a sense of diminished capacity and reduced oversight in the consumer protection landscape.The proposed gutting of the federal consumer watchdog agency could leave many Americans with fewer options to resolve financial disputes and hold institutions accountable.Salt Lake City Today

The Trump administration has announced plans to cut more than 80% of the workforce at the Consumer Financial Protection Bureau (CFPB), a government agency tasked with protecting consumers from unfair practices by banks, debt collectors, and other financial institutions. Consumer advocates warn these cuts could make it much more difficult for people to resolve issues like errors on their credit reports.

Why it matters

The CFPB has played a key role in holding financial companies accountable and helping consumers resolve disputes. With the agency's resources and staffing severely reduced, consumers may have fewer options to address problems and will likely have to rely more on other federal, state, and local agencies for assistance.

The details

The CFPB received nearly 6 million consumer complaints last year, with the majority related to issues with the three major credit bureaus - Equifax, Experian, and TransUnion. Under the proposed cuts, the agency would lose over 80% of its workforce, making it much harder for the CFPB to investigate complaints and take enforcement actions against companies engaging in deceptive or abusive practices.

  • In April 2026, the Trump administration announced plans to cut the CFPB's workforce by two-thirds.
  • The CFPB received nearly 6 million consumer complaints in 2025.

The players

Consumer Financial Protection Bureau (CFPB)

A government agency created in 2010 to protect consumers from unfair, deceptive, or abusive practices in the financial sector.

Chi Chi Wu

Director of consumer reporting for the National Consumer Law Center, a consumer advocacy organization.

Katie Hass

Director of Utah's Division of Consumer Protection, a state-level agency that investigates consumer complaints.

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What they’re saying

“We would see all sorts of problems with consumers, for example, having errors on their credit report that they can't get fixed.”

— Chi Chi Wu, Director of consumer reporting, National Consumer Law Center

“The FTC, the Federal Trade Commission, they're a natural fallback if your complaint was in with the CFPB and you're like, 'Wait, now what's going to happen to my complaint?' A great alternative is to go ahead and report to the Federal Trade Commission.”

— Katie Hass, Director, Utah Division of Consumer Protection

What’s next

Consumers with unresolved complaints at the CFPB may need to file new reports with the Federal Trade Commission, state consumer protection agencies, or other federal entities like the FBI or Department of Justice.

The takeaway

The proposed cuts to the CFPB could make it significantly harder for consumers to resolve financial disputes and hold companies accountable, underscoring the importance of having strong consumer protection agencies to safeguard the public from unfair and deceptive practices.