Elon Musk Wants to Delete the CFPB—Here’s 10 Things Consumers Stand to Lose

Story by Cynthia Talbot. November 29, 2024.

Tech billionaire Elon Musk has sparked debate after calling for the elimination of the Consumer Financial Protection Bureau (CFPB), an independent federal watchdog that protects Americans from financial exploitation. In a post on his social media platform, Musk wrote, “Delete CFPB. There are too many duplicative regulatory agencies.” His remarks have reignited discussions about the importance of consumer protections in an increasingly complex financial landscape.

Critics argue that dismantling the CFPB would leave consumers vulnerable to predatory practices by banks, lenders, and debt collectors. Supporters of the CFPB point to its critical role in ensuring fairness and transparency in the financial industry. Here’s a closer look at the top 10 ways the CFPB has made a difference:

  1. Handles Consumer Complaints
    The CFPB has addressed more than 4 million consumer complaints since its creation, helping resolve disputes with financial institutions and holding companies accountable for their actions.
  2. Provides Financial Relief
    Through enforcement actions, the CFPB has secured over $20.7 billion in financial relief for consumers, benefiting more than 205 million individuals who were subjected to unfair or illegal practices.
  3. Fights Exploitative Junk Fees
    The agency works to save households billions of dollars annually by targeting excessive fees imposed by banks, credit card companies, and other financial institutions.
  4. Protects Against Predatory Lending
    The CFPB enforces regulations to prevent deceptive or abusive lending practices, ensuring consumers are not trapped in cycles of debt.
  5. Regulates Debt Collection Practices
    The bureau curtails aggressive and unethical tactics by debt collectors, protecting individuals from harassment and undue pressure.
  6. Supports Rental and Housing Disputes
    The CFPB has helped renters recover funds from landlords who violate rental agreements or engage in predatory practices, ensuring accountability in the housing sector.
  7. Enhances Credit Transparency
    By monitoring credit reporting agencies, the CFPB ensures accurate and transparent credit reporting, empowering consumers to make informed financial decisions.
  8. Ensures Accountability for Financial Breaches
    When companies mishandle personal financial data, the CFPB steps in to enforce reparations and protect affected consumers.
  9. Educates Consumers
    The agency provides financial education resources, equipping individuals with the knowledge to navigate complex financial systems and avoid common pitfalls.
  10. +
    By cracking down on discriminatory or deceptive practices, the CFPB ensures that financial institutions adhere to laws designed to protect consumers.

The Stakes of Eliminating the CFPB

Musk’s call to eliminate the CFPB aligns with broader critiques from some business leaders and politicians who view regulatory agencies as barriers to economic growth. However, dismantling the CFPB could leave millions of Americans without recourse when faced with financial exploitation. From protecting renters from unscrupulous landlords to ensuring transparency in credit reporting, the CFPB has proven to be a vital advocate for everyday people.

Why Should Musk Care?

Musk is a gazillionaire.

Years ago, when I worked for a financial services company in Columbia, South Carolina, I got messages left on my phone from a zombie debt collector for a Cole Brown. It was always an automated announcing call, and since the calls were after hours, messages were left for the next day. Very seldom were the callers live.

One day a coworker, Mark, dropped by my cube with a question. Before Mark could ask a question, the phone rang. I reached behind me to grab the phone.

Me: “Hello” Caller: “Can I speak to Cole Brown?” Me: “No.” and I hung up. Mark: “It must not have been a very important call.” I said, “Nah, it’s just a debt collector.” The look, the jaw drop on his face, was priceless.

Another day, a message from Roper Hospital was left. That was my first clue to finding Cole Brown. Why would a Charlestown hospital be calling Columbia? Two different area codes.

Hospitals can financially destroy a person. Using an online telephone directory for Charlestown SC, I searched for Cole Brown and found him. Same last seven digits as my desk phone, just a different area code, 843 instead of 803. I was prepared for the next time that a live person called.

Eventually, a live person called.

Caller: “Can I speak to Cole Brown?” Me: “No.” Caller: “This is …” and rattles off my desk phone number. Me: *“Yes, we have three area codes.”, and hung up. South Carolina now has six area codes.