The Court of Appeals recently said the Consumer Financial Protection Agency could implement a massive termination.
The Consumer Financial Protection Bureau (CFPB) has fired most of the remaining staff.
A CFPB spokesman said on April 17 that around 1,500 people had been fired across the core division, including enforcement and supervision.
The reduction will involve approximately 200 staffing if they become effective.
An email sent to employees identified the staff as “their position has been excluded and notified that (their) employment would be “dismissed in accordance with the expansion (RIF) process,” according to a lawyer representing the National Treasury Department’s employee union, including CFPB workers.
Employees were told that access to the CFPB system would end at 6pm on Friday.
Created after the 2008 financial crisis, CFPB is the only federal agency with the authority to implement the Consumer Finance Act at non-bank institutions, such as mortgage founders and payment services.
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The lawyer said the widespread dismissal appears to exceed the court’s injunction, urging Jackson to demand that the government show that it is not violating the injunction.
The CFPB did not respond to requests for comment regarding the filing.
Jackson said CFPB’s chief operating officer or another chief officer must attend the Friday morning hearing to outline the scope of the end.
The appeals court also ruled that the Trump administration cannot abolish the institution.
Earlier this year, President Donald Trump and adviser Elon Musk called for the removal of the CFPB and denounced the politicized enforcement. But later, administrative officials said the CFPB would continue to exist in some way, noting that Trump has nominated a new manager.
“Destroying the CFPB in the face of a court order blocking illegal closures is another attack by this lawless regime on consumers and our democracy, and we will fight back against everything we have,” she said.
Reuters contributed to this report.
