Cara Petersen, the acting head of enforcement at the Consumer Financial Protection Bureau (CFPB), has resigned from her position, citing grave concerns over the Trump administration’s handling of the agency. In a strongly worded email to colleagues, Petersen criticized the current leadership for undermining the bureau’s fundamental purpose. She described the agency’s mission as being “under attack” more than at any other point since its inception.
Petersen has been with the CFPB since its founding in 2011 and is the second high-ranking enforcement official to resign in protest this year. Her departure follows that of Eric Halperin, the previous head of enforcement, who also left after sending a critical email in February. Petersen assumed her role after Halperin’s exit and led the bureau’s enforcement operations through an increasingly contentious period.
Leadership Shift Paralyzes Agency Functions
The CFPB, created to serve as the country’s primary regulator for consumer financial protections, has faced significant operational setbacks under the Trump administration. The situation escalated when President Trump appointed Russell T. Vought, director of the White House budget office, as the bureau’s acting leader in February. Vought has since halted nearly all enforcement activity and sought to reduce the agency’s workforce by 90 percent—a move that has been temporarily blocked by court orders. Many employees remain on administrative leave.
Under Vought’s leadership, the bureau has withdrawn from most of its active lawsuits, including major cases targeting banks accused of payment app fraud and deceptive practices around interest rates. Furthermore, previously negotiated settlements have been canceled, allowing companies to retain funds initially intended for consumer restitution. One notable reversal includes the discontinuation of an order requiring Toyota to refund $48 million to customers who were allegedly blocked from canceling unnecessary insurance products.
Concerns Grow for consumer financial protections
In her resignation email, Petersen expressed deep worry about the direction of the CFPB. “It is clear that the bureau’s current leadership has no intention to enforce the law in any meaningful way,” she wrote. While wishing her colleagues the best, she voiced serious concern for the future of consumer financial protections in the United States. Her departure adds to the growing alarm among advocates and former officials about the agency’s ability to fulfill its mandate under the current administration.
The CFPB’s struggles underscore broader political tensions over regulatory oversight and consumer rights. Although the agency was established by Congress and cannot be dismantled without legislative action, its capacity to act has been severely compromised. Critics argue that the rollback of enforcement efforts leaves American consumers increasingly vulnerable to financial abuses.
A correction was issued on June 10, 2025, to clarify the spelling of Petersen’s name, which had been previously reported incorrectly. Her exit marks a critical moment for the CFPB as it grapples with internal upheaval and diminishing enforcement capabilities.
