A new report from the Senate Banking Committee Minority Staff estimates that actions taken to scale back the Consumer Financial Protection Bureau over the past year have cost American consumers as much as $19 billion, largely due to dismissed enforcement actions, abandoned settlements, rescinded rules, and a sharply reduced consumer complaint function. The report argues that the cumulative impact of fewer investigations, undone consent orders, and rolled back fee regulations has shifted billions of dollars back onto households, while weakening the CFPB’s role as the primary federal “cop on the beat” for consumer finance oversight.
According to the report, the CFPB has historically returned more than $21 billion to consumers since its creation, largely through enforcement actions and restitution tied to unlawful practices. The new analysis claims that over the past year alone, at least 22 enforcement actions were dropped, representing more than $3.5 billion in alleged consumer harm that may no longer be subject to restitution. In addition, more than 20 settlements or consent orders were terminated, reduced, or left unenforced, potentially leaving hundreds of millions of dollars in consumer payments undistributed.
“Over the last fourteen years, the CFPB has worked to protect consumers from unfair, deceptive, and abusive practices and provide a fair and safe financial marketplace,” according to the report. “Rather than continue this essential work, President Trump and Acting Director [Russell] Vought have spent the last year attempting to destroy the agency. In the last year, critical rules were dismissed; over forty enforcement actions, settlements, and consent orders were undone; consumer complaints were disregarded; and bad actors continue to profit off of consumers.”
The report also points to the reversal or vacatur of CFPB rules and guidance as a major cost driver. Two high profile examples cited include overdraft fee limits and credit card late fee caps that were projected to save consumers billions annually. With those rules no longer in effect, the report contends that consumers continue to bear higher fees, particularly in checking accounts and revolving credit products.
“Donald Trump promised to lower costs for Americans ‘On Day One.’ Instead, he is trying to shut down an agency that protects Americans from getting scammed out of their money by big banks and giant corporations,” said Sen. Elizabeth Warren [D-Mass.], the committee’s Ranking Member. “As a result, Trump’s attempt to sideline the CFPB has cost families billions of dollars over the last year alone. We’re going to keep fighting for the CFPB and against the billionaires who want to get rid of it.”
