Jun 12, 04:25 PM

CFPB Enforcement Chief Resigns as Fed IG Probes Overhaul, Judge Blocks Bid to Void Mortgage Settlement

The Consumer Financial Protection Bureau’s acting enforcement director, Cara Petersen, has resigned, arguing that sweeping changes ordered by President Donald Trump have left the watchdog unable to police consumer abuses. Petersen called the policy shift “devastating,” telling colleagues the bureau now has “no intention to enforce the law in any meaningful way.” Her exit follows the February dismissal of CFPB Director Rohit Chopra and deepens uncertainty at an agency created after the financial crisis to oversee banks, lenders and debt collectors. The Federal Reserve’s inspector general has opened a review into the administration’s efforts to curb the bureau’s powers, adding to mounting scrutiny from lawmakers and consumer advocates. Meanwhile, a federal judge in Chicago refused the CFPB’s request to vacate a settlement reached last year with a local mortgage lender accused of discriminating against Black borrowers, calling the move an extraordinary step lacking legal basis. The attempt, described by the court as “unprecedented,” has encouraged other companies to seek reversals of their own agreements with the regulator. Despite the internal turmoil, the CFPB has continued to bring new cases, including a lawsuit seeking $3.4 million in restitution over alleged illegal advance fees charged by a debt-relief firm. Critics, however, say the pace and ambition of enforcement have diminished sharply since the administration’s overhaul began.

#Consumer Financial Protection Bureau #Cara Petersen #Donald Trump #Petersen #CFPB #Rohit Chopra #Federal Reserve #Chicago #Black

Written with ChatGPT .

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CFPB Enforcement Chief Resigns as Fed IG Probes Overhaul, Judge Blocks Bid to Void Mortgage Settlement

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