The CFPB has always been underpowered & under resourced. I reported malpractice by the finance industry many times and they could never fix a single problem while banks and CUs got away with murder in broad daylight. But it’s still good to have a watchdog around even if it’s toothless. If anything just to collect and publicize abuses, and advise consumers.
Now the Emperor of DOGE (Elon) is putting that toothless (yet mildly helpful) dog down.
The cherry on top: data brokers can keep selling your social security number, says new CFPB chief. This timing seems strategic. Recall that Trump overturned Obama’s policy that required ISPs to obtain consumer’s consent before selling their private data. I see a pattern.
Do you still want to participate in a banking system that exploits consumers? Consider these actions:
- Draw down your bank balances by mostly cashing out. Keep the balance low.
- Ask employers to pay you by cash or paper check.
- Cash the payroll check at the issuing bank rather than deposit it. Bypass your bank. (Note that some Casinos give perks for cashing payroll checks in their establishment)
- Stop using billpay, which enables an intermediary to collect more data on you (of course, because you have no protection from data abuses). Send paper checks in the mail with your own postage stamps. Unlike billpay intermediaries, USPS will not peek inside the envelope and pawn your data.
- Switch to a bank or CU that is not a KYC overachiever (this may be impossible – most banks demand more data on you than legally required)
- Paycheck too big for this? You’re overemployed. Switch to part-time and quit buying silly tech garbage. Instead, pull your tech out of the dumpers, hack it and liberate it.
Ditch banks and use what instead?
This is the real question.
I don’t think the best advice regarding checking accounts has really changed. You should already have gotten out of the big banks, because they actively try to screw you. That’s been true with or without the CFPB. It just takes a higher priority now.
CUs are accountable to their members, but now we’ve lost some assurances. We probably need to be more vigilant to ensure it’s being managed properly.
I’ve reported unlawful CUs to the NCUA. They have never taken enforcement action. You cannot rely on them.
Once you start reporting banks and CUs to their respective regulators, you will quickly realize the protections are a façade. They only pretend to protect consumers for optics – to maintain consumer confidence. My confidence in bank regulation from the consumer standpoint is gone.
I have only gotten results when suing in court. But that is only possible in a minority of situations. When it comes to data abuses, the court is mostly helpless unless you can prove actual damages. It’s insufficient to prove data exfiltration.
In the US you have a right to pay all your debts in cash. This is enshrined in the federal legal tender law.
For points of sale, a merchant can refuse cash. In which case they have failed to earn the business of ethical consumers and you should patronize their competitor.
Buy local. You should be boycotting Amazon anyway.