A new analysis from the Student Borrower Protection Center and the Consumer Federation of America claims that actions taken by President Donald Trump’s administration to dismantle the Consumer Financial Protection Bureau have cost Americans at least $18 billion in higher fees and forgone compensation.
Driving the news: Since reassuming the presidency in early 2025, Trump has drastically scaled back the CFPB’s regulatory and enforcement efforts, following through on his campaign promise to “eliminate” the agency. Actions include repealing fee caps, dismissing pending enforcement cases, and halting redress payouts to consumers.
By the numbers:
- $10 billion/year in continued credit card late fees after CFPB’s proposed $8 cap was reversed.
- $5 billion/year in overdraft fees preserved after Congress nullified the CFPB’s proposed $5 cap.
- $3 billion in harm tied to 22 dropped enforcement cases, including:
- $2B from Capital One related to savings account interest.
- Nearly $1B from Zelle fraud cases involving Wells Fargo, BofA, and JPMorgan Chase.
- $100 million in frozen redress from Navient settlement due to stalled CFPB authorization.
- Up to $50 million in consumer redress voided after settlements with Toyota Motor Credit and Wise Inc. were quietly revised or terminated.
Between the lines: The dismissed enforcement actions and reversal of rulemaking have benefitted large financial institutions and fintechs at the expense of consumers. Some cases involved repeat corporate offenders, and watchdogs argue the rollbacks send a permissive signal to the industry.
- “Together, these actions reveal the lie at the center of the Trumpist pitch on the economy: rather than lowering costs for working people, President Trump and his allies are taking nearly $20 billion owed to families and giving it back to Wall Street, Big Tech, and corporate scammers,” the report concludes.
