By Douglas Gillison

(Reuters) -The top officials for enforcement and supervision at the U.S. Consumer Financial Protection Bureau said Tuesday they had resigned, citing the Trump’s administration decision to halt all activity at the agency, according to internal emails seen by Reuters.

However, the White House Office of Management and Budget said they had instead been placed on administrative leave. Trump named OMB Director Russell Vought as acting CFPB Director last week.

In the emails, Enforcement Director Eric Halperin and Supervision Director Lorelei Salas told their offices that their positions had become untenable.

“As you know we have been ordered to cease all work. I don’t believe in these conditions I can effectively serve in my role, which is protecting American consumers,” said Halperin wrote. “Today I made the difficult decision to resign effective today.”

Salas said she believed the decision by Vought to halt all supervisory work was illegal.

“It has been an honor to be part of this team — I thank you and ask that you stay strong,” she wrote.

In an email, an OMB spokesperson said the agency had not received Salas’ resignation and said: “They did not resign. They were placed on administrative leave.”

The spokesperson also accused Halperin of insubordination, citing a Politico report according to which Halperin had told staff last week that the agency’s work stoppage did not apply to pending cases. Halperin could not be immediately reached for comment.

Since Friday, Vought has sought to switch off the consumer watchdog, which was created after the 2008 financial crash to protect consumers from predatory financial services practices, many of which are not otherwise regulated by the federal government.

Staff members, union representatives and Democratic lawmakers have staged protests outside the agency’s headquarters, denouncing the administration’s moves as illegal and employee unions have sued to reverse the actions.

Conservatives and some industry representatives have sought to dismantle or weaken the agency since its creation, arguing it was unaccountable and harmed free enterprise.

(Reporting by Douglas Gillison, editing by Deepa Babington)

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