Hundreds of demonstrators gathered outside the Consumer Financial Protection Bureau (CFPB) headquarters in Washington on Monday, protesting the agency's sudden suspension of operations under acting director Russell Vought.

The move has sparked outrage from consumer advocates and Democratic lawmakers, who warn that it endangers protections for millions of Americans.

Vought, who took charge of the agency last week, ordered all staff to stop work and stay away from the office. "Employees should not come into the office," he wrote in an email. "Please do not perform any work tasks."

The decision follows a weekend shift in leadership that saw members of Elon Musk’s Department of Government Efficiency (DOGE) gain access to CFPB systems and halt all oversight activities. Musk, a vocal critic of the agency, had previously posted "CFPB RIP" on his social media platform X, signalling his intent to dismantle the watchdog.

The CFPB was established in 2010 as part of the Dodd-Frank financial reform law to protect consumers from unfair financial practices. Since its inception, it has secured over $21 billion in relief for wronged consumers.

Democratic lawmakers, including Senator Elizabeth Warren, who played a key role in creating the agency, joined the protesters. "The CFPB caught the crooks and made them give back," she said. "Congress built it. And no one other than Congress—not Donald Trump, not Elon Musk—can fire the financial cops."

Protesters held signs reading "We stop bad companies that scam soldiers" and "Hands off CFPB." Senator Chris Van Hollen criticised Musk’s involvement, stating, "There’s something particularly sick, particularly twisted, about the richest man in the world trying to shut down compensation for Americans who have been cheated by scammers."

The suspension has left several ongoing cases against major banks in limbo. These include lawsuits against Capital One, JPMorgan Chase, Bank of America, and Wells Fargo over allegations of fraudulent practices and excessive fees. Chris Peterson, a law professor specialising in consumer finance, warned, "The enforcement actions, all of them, are going to be shut down."

The National Treasury Employees Union, representing CFPB staff, has filed multiple lawsuits challenging the legality of Vought’s directive. One lawsuit argues that halting the agency’s operations violates constitutional protections, while another alleges that employee records were unlawfully shared with DOGE.

Consumer advocates fear that the agency’s closure could lead to unchecked financial misconduct. "Director Vought ordering all CFPB staff to stop their work is essentially giving financial companies a green light to defraud and gouge their customers," said Christine Chen Zinner of Americans for Financial Reform.

As protests continue, lawmakers and advocacy groups vow to fight against the shutdown. "We have worked too hard, we have fought too hard for this democracy, and we ain’t turning it over to Elon Musk," said Representative Maxine Waters. "We’re going to win."

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