What CFPB cuts mean for you

Summary

Marketplace Morning Report

Episode: What CFPB Cuts Mean for You
Host: Sabri Benashour (in for David Brancaccio)
Date: March 17, 2026

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Episode Overview

This edition of Marketplace Morning Report examines how funding and staffing cuts to the Consumer Financial Protection Bureau (CFPB)—the government watchdog created after the Great Recession—are affecting consumers. Through an insightful interview with ProPublica data reporter Joel Jacobs, listeners learn about the real-life consequences of decreased oversight, particularly in the credit reporting industry. Earlier in the episode, the show covers the latest on energy price surges and economic instability driven by turmoil in the Middle East and its potential impact on inflation and Federal Reserve policy.

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Key Discussion Points and Insights

1. Oil Price Surge and Economic Ripples

(00:49 - 03:47)

Expert Guest: Ken Watret, Vice President at S&P Global Market Intelligence

• Brent Crude and Gasoline Prices:

  • Oil prices have jumped by approx. 50% in a month due to Middle East tensions.
  • National average gas price is up 40% to $3.79/gallon.

• Predictions and Outlooks:
  Watret shares the company's "base case"—limited disruptions easing by April may help lower energy prices, but uncertainty remains high.

  “The base case… is that we'll see limited disruption which lasts a little longer and then starts to ease as we move into April. And energy prices will come down. But the uncertainty surrounding that assumption is obviously very high.”
  – Ken Watret, 01:34

• Diesel Fuel as an Inflation Driver:

  • Diesel surpasses $5/gallon for the first time since Dec 2022.
  • Diesel's importance: Powers trucks, ships, and buses, raising broad inflation by increasing transport and production costs.

    “There's the cost of transport, which is another source of input costs, and then there's the second round effects…persistent higher inflation rates…feed into inflation expectations and then wage and unit labor cost growth.”
    – Ken Watret, 02:23

• Fed Policy Dilemma:

  • High fuel-driven inflation prompts questions about the Federal Reserve’s use of interest rates as a tool.
  • Watret notes central banks, chastened by a slow response after the Ukraine invasion, are more likely to act quickly if broader-based inflation emerges.

    “I think on this occasion they would be much more likely to react more quickly if we saw those broader based inflation pressures.”
    – Ken Watret, 03:19

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2. Credit Reporting and the Impact of CFPB Cuts

(05:35 - 08:48)

Investigative Topic: Cuts to the CFPB and consumer impact
Guest: Joel Jacobs, Data Reporter, ProPublica

• Consumer Story Highlights Systemic Issues:

  • Rebecca Shepherd, Colorado accountant, is wrongly assigned $240,000 in student loan debt—her credit score collapses.
  • She is rebuffed by major credit bureaus (Equifax, TransUnion, Experian), even after multiple dispute attempts—including via certified mail.

    “The response she got from TransUnion was a postcard in the mail saying they didn't think the dispute came from her.”
    – Joel Jacobs, 06:20

• Wider Analysis of Industry Response:

  • Data shows Experian and TransUnion have “substantially dialed back” how often they provide consumer relief after complaints.

    “We saw that basically two of the three big credit bureaus…really substantially dialed back how often they provide relief…”
    – Joel Jacobs, 07:00

• Industry Justification & Questionable Practices:

  • Credit bureaus blame a flood of complaints from third-party credit repair firms, labeling many as illegitimate.
  • However, some legitimate complaints may be misclassified and ignored.

    “They are potentially labeling some of these, you know, more legitimate complaints also as coming from third parties.”
    – Joel Jacobs, 07:33

• CFPB’s Challenges and Risks:

  • CFPB acknowledges bot-flooded complaint systems and the focus on sifting out legitimate concerns.
  • Ongoing legal battles could result in mass staff layoffs (up to 90%), raising concerns over the agency’s ongoing ability to maintain oversight and enforce consumer protections.

    “If they do end up going through with those kind of mass firings, who will sort of maintain the database? Who will oversee? …How responsive will companies be to the complaints that come through?”
    – Joel Jacobs, 08:06

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Notable Quotes & Memorable Moments

• Economic Instability:

  “Energy prices will come down. But the uncertainty surrounding that assumption is obviously very high.”
  – Ken Watret, 01:37

• Inflation Pressure Transmission:

  “Second round effects, as economists call them…persistent higher inflation rates to then feed into inflation expectations and then wage and unit labor cost growth.”
  – Ken Watret, 02:33

• Consumer Frustration:

  “The response she got from TransUnion was a postcard in the mail saying they didn't think the dispute came from her.”
  – Joel Jacobs, 06:48

• Agency Under Threat:

  “If they do end up going through with those kind of mass firings, who will sort of maintain the database? Who will oversee?”
  – Joel Jacobs, 08:13

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Timestamps for Important Segments

• Oil and Gas Prices, Middle East Instability: 00:49–03:47
• Real-world Credit Reporting Failures: 06:00–06:53
• Patterns in Credit Bureau Responsiveness: 06:53–07:33
• CFPB’s Internal & External Challenges: 08:01–08:44

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Conclusion

This episode distills the economic consequences of global conflict, the direct hit to consumers from rising fuel prices, and the growing vulnerability of American taxpayers as government watchdog institutions like the CFPB face funding and staffing threats. Through expert interviews and a revealing consumer case study, the show brings clarity to the stakes for ordinary people as oversight weakens and the cost of complaints—and errors—rises.

Transcript

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Download today the latest on the economics of the war from Marketplace. I'm Sabri Ben, ashore in for David Brancaccio. President President Trump asked allies to send ships to help reopen the Strait of Hormuz. Several have declined to get involved. Meanwhile, the price of oil is still about 50% higher than it was a month ago. Ken Watret is here to talk about it. He's a vice president at S and P Global Market Intelligence. Ken, good morning.

[E]

Good morning.

[D]

So the price of a barrel of Brent crude is about 50% higher than it was a month ago. Gallon of gas is $3.79. That's up 40% from a month ago. What is your prediction of where this is going to go?

[E]

Well, it's highly sensitive to developments in the Middle East. Obviously we have a series of scenarios which we're looking at. The base case which informs our current forecasts is that we'll see limited disruption which lasts a little longer and then starts to ease as we move into April. And energy prices will come down. But the uncertainty surrounding that assumption is obviously very high. And there are scenarios which unfortunately will result in persistently high energy prices for much longer.

[D]

US diesel fuel is now above $5 a gallon for the first time since December of 2022. Diesel is very important because it goes into trucks and ships and buses and all the things that do the things in the economy. How significant of an inflation mover is that?

[E]

Well, it's very important in a number of respects. Obviously it has a direct impact on the consumer price inflation rate. And then there' indirect effect of higher energy prices. They pass through into the cost of production of other goods. There's the cost of transport, which is another source of input costs, and then there's the second round effects, as economists call them, which is the potential for persistent higher inflation rates to then feed into inflation expectations and then wage and unit labor cost growth.

[D]

I wanted to ask you about that. The Federal Reserve is deliberating today and tomorrow on what exactly to do with interest rates in the current circumstances. If inflation is being driven by higher fuel costs, what is the point of having higher interest rates? Like, what can higher interest rates do about that kind of inflation?

[E]

We need to bear in mind that after the problems following Russia's invasion of Ukraine in early 2022, central banks and advanced economies were very slow to react to the rise in inflation and they probably think that that was an error with the benef hindsight. I think on this occasion they would be much more likely to react more quickly if we saw those broader based inflation pressures.

[D]

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[E]

Thank you.

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[D]

Late last week, a federal judge blocked the Trump administration from cutting off funding for the Consumer Financial Protection Bureau. This is the government watchdog agency created after the Great Recession. The administration has been trying to basically gut the agency of staff and money, and that effort has already started to have consequences for consumers, according to a new investigation by ProPublica. Joel Jacobs is a data reporter there who wrote all about it. Hi, Joel.

[B]

Thank you for having me.

[D]

So you start the piece with this story of this Colorado accountant, this woman, Rebecca Shepherd. She finds a huge mistake on her credit report, $240,000 in student loan debt that is not her debt. Her credit score plunges. She tries to get the three credit reporting companies to fix this. What happens?

[B]

First she tries to go to the credit bureaus directly, and then she's basically rebuffed. Then she tried to go through the CFPB's complaint and the company, in this case, the credit bureaus, the big three, Equifax, TransUnion and Experian, you know, they're required to give a response within 60 days. But in her case and in many other cases, it did not resolve her issues. And she even actually disputed a fourth time via certified mail. And in that case, the response she got from TransUnion was a postcard in the mail saying they didn't think the dispute came from her.

[D]

This is part of a bigger pattern that you found.

[B]

Yeah, it's not very transparent what happens when you go directly to a credit bureau. You know, they don't release, you know, public statistics on how often they fix a credit report in response to, you know, a direct dispute. But we do have some data when somebody does go through the CFPB and complains. And so that's what we looked at. Right. And we saw that basically two of the three big credit bureaus, that would be Experian and TransUnion, they really substantially dialed back how often they provide relief, which is sort of a term in theory that means, you know, they made some kind of change to someone's credit report in response to a complaint.

[D]

What do the credit bureaus say when you bring this up with them?

[B]

Right. So the credit bureaus really say that the complaint system, and potentially their disputes as well, are flooded with third party credit repair firms, you know, many illegitimate complaints, people listening to social media influencers online and trying to contest everything that's on their credit report that's negative, even if it's accurate. And, you know, while those third party complaints certainly do exist and bad actors do exist in the credit repair space. They are potentially labeling some of these, you know, more legitimate complaints also as coming from third parties.

[D]

What about the cfpb? What did they tell you about their enforcement and oversight?

[B]

A spokesperson did say that basically, you know, the complaint system was being flooded with bot submissions and that, you know, their efforts are basically focused on trying to clear that out so that legitimate consumers can get help. I will say, though, you know, at the same time, the CFPB is fighting in court for basically the right to fire 90% of its employees. So I think there is kind of a broader question, though, of if they do end up going through with those kind of mass firings, who will sort of maintain the database? Who will oversee? And obviously, if there's no kind of pressure of oversight or enforcement or examination, how responsive will companies be to the complaints that come through?

[D]

Joel Jacobs is a Data reporter with ProPublica. Joel, thank you so much.

[B]

Thank you very much.

[D]

In New York, I'm Sabri Benishour with the Marketplace Morning Report. From APM American Public Media. When we get big news overnight and the economy turns on a dime, Marketplace Morning Report is there to get you up to speed as you start your day. And listener support keeps this fast, smart, global reporting available to everyone not stuck behind a paywall. We cannot do it without you. So if you rely on Marketplace Morning Report to make sense of the day ahead, invest in our independent and accessible journalism. Donate [e-mail] or click the link in the show notes.