Today I listened to Paul Krugman in conversation with Elizabeth Warren. Warren states, the CFPB is frozen and it found $20 Billion in financial consumer fraud and gave the money back to the people who were defrauded. This is definitely an agency worth fighting for. It takes the financial risk, seen in 2008, out of the Financial System.
This is precisely why the Trump Musk team don’t want it to exist. The Consumer Protection Agency works for consumers as intended. Axios agrees!
Another issue worth fighting for in Congress. This Bureau protects us from Financial Fraud. Don’t let DOGE destroy our protection from financial predators.
Dozens of contracts critical to the functioning of the Consumer Financial Protection Bureau (CFPB), have either been canceled or are on their way to termination, according to a detailed affidavit filed in federal court last week.
Why it matters: The CFPB is an agency tasked with protecting people from financial fraud, but it has been gutted by the White House over the past two weeks as part of the broad purge of the federal government.
Catch up quick: The affidavit was filed by someone calling himself Charlie Doe, who says he is a contracting officer at the agency, which is a person who negotiates, administers and terminates contracts.
- It is part of a lawsuit filed by the National Treasury Employees Union against Russell Vought, the CFPB acting director, that claims efforts to “shut down” the agency are unlawful.
Where it stands: The plaintiffs in the lawsuit were able to get the court to pause contract terminations. But that agreement will expire today, when another hearing in the case is scheduled.
- It remains unclear what happens next. Doe warns that if there is no order prohibiting the termination to continue, the vast majority of the contracts will be fully terminated within the week.
Zoom in: Doe says he has worked in government for 25 years, but the past few weeks “are unlike anything I’ve ever seen at any agency during any change in administration.”
- Staff were directed to cancel a total of about 174 contracts with vendors, for training of examiners who supervise banks, for handling cybersecurity, and for serving as expert witnesses in litigation.
- Canceled contracts are listed on the DOGE Wall of Receipts. They appear to also include mortgage data analytics and even one for disability insurance services.
What they’re saying: “These are the basics of what it takes to run an agency,” Julie Morgan, former associate director at the CFPB, tells Axios.
Yes, but: The Trump administration, in a court filing, says it will continue to operate the CFPB and has nominated a new director.
The intrigue: Some contracts are related to maintaining the agency’s much-lauded consumer complaint database, where members of the public can go to register issues they’re facing with companies. It is generally viewed as one of the most popular and least controversial services the CFPB offers.
- After news got out that a contract for a complaint hotline was terminated, that agreement was reinstated. That doesn’t mean the agency’s complaint mechanisms are working.
- A different contract to maintain the complaint database remains canceled, per the affidavit. “There is now a backlog of thousands of complaints that haven’t been forwarded to financial institutions,” the affidavit says.
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Read on: it’s true, it’s easier to total a car then replace its part. Is it cost effective to you? Let Axios know how you feel about having your car replaced? Is it more expensive to you?
Crashing a car is like crashing a computer these days, and the result is a higher share of vehiclesbeing totaled.
Why it matters: When cars, pickups and SUVs are deemed a total loss, it leads to higher replacement costs and insurance premiums for everyone else.
Between the lines: The share of vehicles deemed totaled in collisions hit an all-time high of 27% in 2023, according to LexisNexis Risk Solutions data compiled for Axios. That’s up from 19% in 2018.
The big picture: Vehicles are stuffed with electronics these days, and even if they don’t need to be replaced or repaired after a crash, the electronics need to be addressed.
- Advanced driver assistance systems — such as lane-departure warning and rear-cross alerts — “have to be recalibrated with any accident,” says Chris Rice, vice president of strategic business intelligence for LexisNexis Risk Solutions.
Zoom in: Pandemic-era trends also accelerated the percentage of vehicles that are declared a total loss for multiple reasons.
- The cost of replacement parts spiked.
- The amount of time needed to get repairs increased, which also increased the amount of time that insurers had to provide loaners to car owners.
- The cost of loaners soared as car prices skyrocketed, when the chips shortage created production delays.
- It is “almost a perfect storm,” says Frank Cesario, senior director for claims at LexisNexis Risk Solutions.
The upshot is that insurers often decide they would rather fund a replacement than go through the process of repairing a damaged vehicle.
- The average annual cost of full auto coverage increased 15% nationwide in 2024, per data from Insurify reportedby Axios’ Alex Fitzpatrick.
- Rates are likely to increase just 5% nationwide this year, Insurify predicts.
The bottom line: If you’re in an accident, don’t be surprised if your vehicle doesn’t make it.
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