In the decreasing days of the bidet management, the consumer's financial protection office submitted a number of lawsuits against financial companies that he had accused of operating Roughshod with the public.
Now the agency quickly withdraws these and other cases as part of a new interim director. The CFPB last submitted an application before the Federal Court of Arizona this week to submit a lawsuit against the Payment App Zelle and its Big Bank supporters in December.
The lawsuit accused the company that the app in the name of a consortium of banks -including the defendant Wells Fargo, JP Morgan Chase and the Bank of America -to start the service to compete with Venmo and other payment apps.
Without adequate consumer protection, the cell users of $ 870 million recorded loss of fraud, so claimed.
“We welcome the decision of the CFPB to submit his lawsuit against the cell network. As we already mentioned, this lawsuit was unfounded and legally and factually incorrect, ”said a spokesman for the early warning, the company Scottsdale, Arizona, company that operates cells for the banks.
The CFPB requested that the case be rejected in a short legal registration and has not published an explanation in which his decision was explained. However, the move is the latest in a number of case solutions and other measures that the agency is to initiate since Rohit F was released by Trump on February 1st.
The agency did not respond to a request for comments.
The incumbent boss Russell Vougt – also Trump's director of the Office for Management and Household as well as a head of the government mission to reduce the federal government – has instructed the staff to stop everyone “Monitoring and examination activity” and tried to reduce the financing of the agency, say in a tweet: “This cone that contributes to CFPBS Uncountability for a long time is now being switched off.”
The CFPB was enough against Capital One Financial Corp. a lawsuit in which the financial services company of the Wasted customers of interest payments of 2 billion US dollarsBut the agency rejected the last month.
Similarly, the CFPB withdrew a case that she had submitted against Vanderbilt Mortgage and Finance, a company that belonged to the Berkshire Hathaway by Warren Buffett, which it accused Buy buyers of mobile home buyers into unaffordable loans This cost them fees and punishments and even the loss of their houses.
Other complaints that have been dropped Insolvency loans; Höhenfinancing that were supposedly illegal “Change of loan” to generate more fees; and rocket houses, one of the largest housing lines in the country, was Designed illegal setbacks.
When the case of the rocket houses was dropped in the last month, the lender called the lawsuit “an empty claim by the former CFPB director Chopra Chopra to see his name in the public office in headlines in the past few days.”
Rick Claypool, a researcher at Public Citizen, said it was expected that the Trump government would try to withdraw from aggressive persecution of financial companies that are accused of misconduct but not to such a scale.
“What happened is that it is played at a somewhat shocking speed and ruthlessness, with entire categories of the enforcement of companies dropped and pausing,” said Claypool, author of A. Report published on WednesdayAnd calculated the administration or requested that investigations against 89 companies in several federal authorities.
The Consumer Group put together with other interest groups and a federal union last month to file a lawsuit against CFPB and to provide the challenge of what it calls it “Illegal dismantling” the agency, which was founded by a congress act.
During the first Trump administration, the agency paying parliamentary credits rules that consumer groups considered weaker than what the CFPB under the Obama management had proposed. However, enforcement measures against banks were also pursued, including the achievement of a declaration of consent with Citibank, which declared a payment 335 million US dollars in reimbursement For customers about allegations, it violates the truth in violations of loans.
While the agency is currently operating, President Trump has the lawyer and the former director of the Federal Deposit Insurance Corp. Jonathan Mckernan nominated as boss.
During his hearing of his confirmation last month, Mckernan promised to “Implement and enforce the federal financial laws and carry out the individual functions assigned by law (the agency)” – also since the rental agreement is reported to be canceled at the CFPB main seat.
Chopra recently said that the opposition against the agency is not only of traditional banking and credit companies, but also from Tech company of the Great Silicon Valley who want to get into the financial transaction.
“We know that their tentacles are everywhere and have many considerable efforts in banking, loans and payments,” Chopra told Drop Site News and expressly mentioned Google, Apple and Facebook, who tried to start their own currency, libra a few years ago.
He also noticed that Elon Musk – the one in A November post on X said: “Delete CFPB. There are too many double regulatory authorities. “ -wants to transform the social media website, which was previously known as Twitter, into a payment platform.
“I think it's reasonable for Americans to ask himself why he is aiming for this small agency. And I think a large part of the opposition comes from Tech conglomerates because … the agency was a speed of speed in its plans, ”he said.
There was at least one enforcement that said that the CFPB was being pursued – a lawsuit against online creditor Moneylion, which was accused by the agency in 2022 Overloading to loans to service members and their relatives. Moneylion denied the allegations.
The Associated Press and Bloomberg contributed to this Report.