Billionaire Elon Musk wants to abolish the US consumer protection agency

Washington [US], November 28: Billionaire Elon Musk, an advisor on streamlining the apparatus for the elected US administration, has proposed dissolving the Consumer Financial Protection Bureau (CFPB) because he believes it has a duplicate role.
"Abolish the CFPB. Too many duplicate regulatory agencies," billionaire Elon Musk wrote on social network X on November 27. Mr. Musk was chosen by US President-elect Donald Trump to co-lead the Office of Government Efficiency ( DOGE ), an informal commission to streamline payroll, eliminate waste, and eliminate redundant agencies in the federal government.
According to Salon magazine , Mr. Elon Musk 's above reason is disagreed by many experts because the CFPB was established because there was no agency focused on protecting consumers.
According to Business Insider , CFPN was established by the US Congress in 2010 to increase oversight of Wall Street after risky mortgage lending by US financial institutions caused the 2008 global financial crisis. Therefore, only Congress has the power to dissolve it.
The CFPB is authorized to protect Americans from fraudulent practices by financial companies. The agency investigates consumer complaints related to credit cards, loans, bank accounts, and debt collection. The CFPB also enforces consumer protection laws.
As of March 2024, the CFPB had nearly 1,700 employees, with an average salary of about $184,000 per year. Since its inception, the agency has recovered $19.6 billion for consumers through direct compensation, debt forgiveness, and principal reduction.
The CFPB also issued $5 billion in civil penalties against banks, credit unions, debt collectors, lenders, for-profit colleges and financial services companies. The money will go toward a fund to help victims of the financial crisis, and nearly 200 million people are eligible for assistance.
The CFPB is designed to be politically independent as it is funded through the Federal Reserve, rather than being dependent on a budget approved by Congress. While Democrats argue that independence is key to the CFPB's effectiveness, Republicans say the agency's funding and governance structure do not allow for public oversight and encourage excessive regulation.
Source: Thanh Nien Newspaper