Trump Administration Dismantles CFPB Enforcement Actions
Donald Trump directed the Consumer Financial Protection Bureau to dismiss lawsuits against major corporations and reduce enforcement, sparking pledges for congressional investigations.
The Consumer Financial Protection Bureau has significantly reduced its enforcement actions under the second administration of Donald Trump. The agency dismissed lawsuits against major corporations, including Bank of America, JPMorgan Chase, and subsidiaries of Berkshire Hathaway, while deprioritizing the scrutiny of medical debt and buy now, pay later loans.
Agency leadership defended these rollbacks as a necessary correction of agency overreach and thuggery from previous leadership. The agency also removed consumer complaint narratives from its public database. However, a Guardian analysis of agency data indicates that complaints against several companies spiked following the dismissals, with complaints against Branch Messenger Inc increasing by 315% and Rocket Mortgage by over 130%.
Following Democratic wins in the midterm elections, members of Congress have pledged to restore consumer protections. Representative Bill Foster stated that he and other members of the Financial Services Committee will investigate the dismantling of the agency through subpoenas and hearings.
