CFPB’s Acting Enforcement Chief Departs Over Trump ‘Attack’

A top Consumer Financial Protection Bureau enforcement official is stepping down, citing the Trump administration’s “attack” on the agency’s ability to enforce federal law.

Current leadership at the CFPB, including acting Director Russell Vought and Chief Legal Officer Mark Paoletta, have shown they have “no intention to enforce the law in any meaningful way,” acting CFPB Enforcement Director Cara Petersen wrote in a Tuesday email obtained by Bloomberg Law.

“It has been devastating to see the Bureau’s enforcement function being dismantled through thoughtless reductions in staff, inexplicable dismissals of cases, and terminations of negotiated settlements that let wrongdoers off the hook,” Petersen’s email said.

Petersen has been with the CFPB for nearly 15 years and served under directors appointed by Democratic and Republican presidents.

The Trump administration has taken a hatchet to the CFPB’s enforcement unit, dismissing around 20 active cases and moving to vacate or weaken several finalized settlements.

Vought has also tried on two occasions to eliminate around 90% of the CFPB’s workforce, including a large swath of the enforcement staff, only to have those plans put on hold by courts.

Vought put most CFPB functions on hold after he was appointed in February.

The CFPB didn’t immediately respond to a request for comment.

Enforcement attorneys were asked in recent weeks to prepare “death memos” outlining why existing investigations should be allowed to continue.

“It is with a heavy heart that I leave my dream job, and the agency I love, but I can no longer effectively lead Enforcement in these circumstances,” Petersen said in her email.

Former CFPB Enforcement Director Eric Halperin was put on administrative leave and left the agency in February.

Petersen thanked the CFPB enforcement staff for the work they did, including returning more than $12 billion to consumers harmed by banks, payday lenders, consumer credit reporting companies, and other consumer finance companies since the agency opened its doors in 2011.

“It is difficult to say goodbye to all of you and to the CFPB,” Petersen said in the email. “And while I wish you all the best, I worry for American consumers.”