Why Cutting the CFPB Hurts Regular People - Not Just Politics, But Your Wallet
Most people don’t know what the Consumer Financial Protection Bureau (CFPB) is——but it’s one of the most important government agencies looking out for regular people. It helps protect you and your family from unfair treatment by banks, credit card companies, student lenders, and payment apps like CashApp or Venmo.
But right now, some members of Congress are trying to shut it down, or at least weaken it so much that it can’t do its job.
What Is the CFPB, and Why Was It Created?
The CFPB was started after the 2008 financial crisis to make sure big financial companies couldn’t cheat or trap people into debt without consequences. It was designed to:
Be independent, with one strong leader (not a big, slow-moving group),
Be funded through the Federal Reserve, so it wouldn’t be easily influenced by politics or lobbying.
And in 2024, the Supreme Court confirmed that its funding system is legal and fair.
What Just Happened?
On July 1, 2025, the U.S. Senate passed a new Reconciliation Bill - a budget law that includes massive cuts to health care, food help, and the CFPB.
It passed 51-50, with Vice President Vance breaking the tie. If signed by President Trump, the bill will:
Cut the CFPB’s budget by 70% or more
Make it rely on Congress for money every year, meaning it could be shut down piece by piece
Cancel rules that protect people from unfair fees and loans
These changes may not sound exciting - but they affect millions of people, especially those living paycheck to paycheck.
How It Affects YOU and Your Family
Overdraft Fees Stay High
The CFPB made a rule to lower bank overdraft fees (like when your account goes negative) from $35 to $5. This change could save people $5 billion every year.
If Congress cancels that rule, banks can go right back to charging sky-high fees.Medical Debt Can Hurt Your Credit Again
The CFPB created a rule to stop medical debt from lowering your credit score. This is huge: 15 million people have unfairly low scores just because they got sick or had an emergency.
Taking that rule away means people could be punished for simply needing healthcare.Payment Apps Could Be Less Safe
Millions use apps like PayPal, Venmo, or Apple Wallet. The CFPB made a rule to hold these companies to the same standards as banks. Without this rule, fraud might increase, and you could lose money without help.Student Loan Help Gets Cut
If you’ve ever worried about student debt, this one matters. The new law makes it harder for students to get help if their school closes or scams them. It also makes repayment tougher - especially for low-income borrowers.Small Business Owners Left in the Dark
The CFPB collects data to make sure Black, Latina/o, Native, and women-owned businesses aren’t being discriminated against when applying for loans. Cutting this rule makes it easier for banks to deny loans unfairly - and harder to prove it.
This Isn’t Just About Money—It’s About Fairness
When the CFPB is weakened:
Big banks and shady companies have more freedom to take advantage of people
Families lose money to surprise fees or scams
Students and small business owners get left behind
This isn’t just a “Washington, D.C.” problem. It affects people everywhere, especially those already struggling.
What You Should Know Going Forward
Congress is considering:
Changing how the CFPB gets money, making it easier to control or shut down
Canceling important consumer protection rules
Taking away power from the CFPB and handing it to less aggressive regulators
These are moves that help big corporations - not regular people.
The Bottom Line
The CFPB exists to keep things fair. It helps protect your money, your credit, and your future. Weakening it will only make it easier for big companies to take advantage of you.
Ask yourself:
Should we trust banks and loan companies to play fair—without anyone watching them?
If your answer is no, then the CFPB is on your side.
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