The Consumer Financial Protection Bureau (CFPB) has recently shifted its supervision and enforcement priorities, including a notable reduction in staff, which a court has allowed to proceed. The agency voluntarily dropped a lawsuit against a Pennsylvania-based credit card company accused of collecting over $51 million in fees through high-cost membership programs, which involved allegations of violations of the Truth in Lending Act (TILA) and deceptive marketing practices. Additionally, the CFPB moved to withdraw from a predatory lending lawsuit brought jointly with the state of New York against subprime auto lender Credit Acceptance Corp. These actions reflect a broader trend of enforcement pullbacks by the CFPB. Meanwhile, emails and worker accounts have revealed that officials associated with former President Donald Trump pushed to reduce the Consumer Bureau's staff by 90%, a move that has raised concerns among critics.
Recently released emails and worker accounts have revealed that Trump officials were in a rush to slash staff at the Consumer Bureau by 90%. The move has sparked concern and controversy among critics.
The Consumer Financial Protection Bureau voluntarily dropped a case against a Pennsylvania-based credit card company that allegedly collected more than $51 million in fees by trapping consumers in high-cost membership programs. https://t.co/54Ujt4Aj8V
#CFPB Drops Suit Against Credit Card Company Alleging TILA Violations and Deceptive Marketing Practices https://t.co/tvwbNPvHky @BryanTaylorAL #creditcard #marketing https://t.co/zoDLZOLBL0