Democratic lawmakers and advocacy groups are raising alarms about new financial scams targeting veterans and military families. This comes as the White House moves to shut down the Consumer Financial Protection Bureau (CFPB).
The CFPB, established in 2011 as an independent bureau within the Federal Reserve, has been crucial in ensuring that financial products and services are fair and transparent. In 2024, the agency processed nearly 100,000 consumer complaints monthly from service members, veterans, and their families. These issues often involved credit reporting related to military moves, unfair mortgage practices concerning VA home loans, and financial scams targeting military personnel with limited financial education. Internal estimates show that the CFPB helped return more than $175 million to veterans and military dependents in recent years.
In a recent move, purported to cut costs, the White House, alongside billionaire Elon Musk, decided to close the agency. Acting CFPB director Russell Vought criticized the bureau as "woke and weaponized," suggesting it was no longer necessary.
Senator Tammy Duckworth, D-Ill., expressed strong disagreement with this decision, stating, "Getting rid of the CFPB actually will lead to more waste, more fraud and more abuse." She highlighted the financial threats military families face, such as predatory auto loans, mortgage fraud, and payday lenders.
Democratic Party Whip Katherine Clark, D-Mass., echoed these concerns, emphasizing that the American public did not vote for increased scams or corporate greed. Clark stated, "They voted for people to fight for them, for lower costs, for their part in the American Dream."
Advocacy groups have filed lawsuits to prevent the board's closure, arguing that financial scams pose significant risks to military families, potentially affecting security clearance status and readiness. However, the timeline for a decision remains uncertain.
While White House officials argue that CFPB's work can be absorbed by other agencies, Senator Duckworth is urging military charities to enhance efforts to identify and prevent fraud within military communities. "Financial literacy," she stressed, "needs to be re-injected into training, especially for our youngest servicemen and women."
Leo covers Congress, Veterans Affairs, and the White House for Military Times, having reported from Washington, D.C., since 2004. His distinguished work on military and veterans policies has been recognized with numerous awards, including a 2009 Polk award and a 2010 National Headliner Award.
