A top Consumer Financial Protection Bureau official will be forced to testify about the Trump administration’s plans for the agency and whether it is properly handling consumer complaints and other congressionally mandated tasks. Judge Amy Berman Jackson of the US District Court for the District of Columbia at a Monday hearing was skeptical of government claims that the near-total shuttering of the CFPB by acting Director Russell Vought was the normal process during presidential transitions. She was responding in part to declarations from Adam Martinez, the CFPB’s chief operating officer, made to the court that the agency’s consumer response and other units were still functioning despite the shutdown moves. The CFPB submitted his sworn statements in litigation brought by the National Treasury Employees Union, the National Consumer Law Center, the NAACP, and others challenging Vought’s stop-work orders. The NTEU represents many bureau employees. Declarations submitted by the plaintiffs directly contradicted Martinez’s statements that the agency was carrying out its mandatory functions, such as answering and transmitting consumer complaints. “We can’t have edicts issued with people’s fingers crossed behind their backs,” Jackson said at the hearing. Martinez will have to appear for an evidentiary hearing on March 10 at 10 a.m. The plaintiffs will also be required to provide their own witnesses who can discuss whether the CFPB’s complaint response team, student loan ombudsman’s office, and natural disaster response unit—all of which were mandated by the 2010 Dodd-Frank Act—are still operating, Jackson said at the hearing. The judge also ordered that a consent agreement between the plaintiffs and the government blocking the CFPB from mass terminations of employees and destruction of data would remain in place until Jackson rules on a preliminary injunction the union and its co-plaintiffs requested. A side agreement between the CFPB and the plaintiffs that prevented the agency from canceling key contracts was set to expire after the hearing. Jackson ordered the two sides to either come to an agreement on preserving that deal or provide instructions for a way for the judge to narrow it. In a separate case brought by the city of Baltimore, a Maryland federal judge on Feb. 28 extended a temporary restraining order blocking the CFPB from sending its funds back to the Federal Reserve or the Treasury Department.
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