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A federal judge blocked the Trump administration to close the Bureau of Consumer Financial Protection.
US district judge Amy Berman Jackson has issued a preliminary order, which means the agency will continue to exist until she can further decide on a lawsuit to preserve the agency.
Berman Jackson said the court “can and should act” to save the agency. She noted in her ruling that Donald Trump would move quickly without court to close the agency – to protect consumers in the wake of the financial crisis in 2008.
CFPB is responsible for protecting consumers from financial fraud and misleading practices. It processes complaints from consumers and investigates banks to protect lenders from the student loans.
“If the defendants are not envisaged, they will eliminate the agency before the court has the opportunity to decide whether the law allows them to do so, and as the defendants’ own witness warned, the damage would be irreparable,” Berman Jackson wrote.
The independent previously reported on the lawsuit brought against the CFPB and the acting director Russell Vought to contest the bureau’s disagreement. The plaintiffs include various associations as well as a simple consumer: 83-year-old Pastor Eva Steege.
Deepak Gupta, a claimant lawyer, said in a statement “blocking the unprecedented plan to dissolve the CFPB – an agency that created the congress to protect the financial security of the Americans. This decision maintains the Constitution’s separation of powers and preserves the bureau’s important work.”
He added: “We are being made by the decision and look forward to continuing to push our case into court.”
During a trial on March 10, Jackson heard evidence of the chaos that broke out in the agency after government employees were ordered to stop working last month. Trump fired the previous director, Rohit Chopra, on February 1st.
The president then installed a temporary replacement that ordered the immediate suspension of all agency operations, canceled $ 100 million to contracts and fired 70 employees.
In an exclusive interview, Steege said The independent How she planned to meet with CFPB officials on February 10, hoping to forgive $ 15,000 to student debt via the country’s program for the forgiveness of the country’s loan.
The day before her meeting, Steege learned that Trump – with Spier Elon Musk and his effectiveness of the Department of Government – took steps to close the CFPB.
“The illegal actions of the defendants will have immediate consequences for the Americans who designed the CFPB through Congress to protect,” according to the case.
In her ruling Berman Jackson, he specifically referred to the quotes of Trump, Musk and their allies about the bureau. Musk put “CFPB RIP” on X and added an emoji from a tombstone, while Trump calls it “a very important thing to get rid of”.
“In summary, the court cannot look away, or the CFPB will be completely dissolved and taken apart within thirty days, even before this lawsuit concludes,” Jackson wrote.
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