- Key Observations: The CFPB has decided to discontinue monitoring requirements for Apple and various US banks, leading experts to notice a broader trend.
- Supporting Evidence: Since President Trump took office, the CFPB has closed numerous enforcement actions and initiated two new ones.
- Expert Insight: “The numbers are striking,” stated Amanda Fischer, COO of a more equitable market. “They haven’t introduced anything new.”
The Consumer Financial Protection Bureau is set to eliminate consent orders related to past incidents, and many employees at the bureau anticipate that all existing enforcement actions will be dropped.
Regulators who are currently facing challenges told American bankers that the CFPB might soon run out of funds, prompting a rush to wrap up ongoing enforcement actions. This comes as rumors of layoffs circulate among staff. Some CFPB employees shared this information anonymously due to fears of backlash.
Recently, the CFPB terminated its consent order established during the Biden administration against US banks and Apple. This decision has lifted monitoring and compliance obligations that were expected to last several more years—specifically, four years for Apple and three for US Bank.
“I believe this is part of a pattern that the Bureau has adopted since it began, which is to broadly allow the financial services industry to oversee the Bureau’s operations,” noted Amanda Fischer, chief operating officer of a progressive nonprofit organization.
In December 2023, the CFPB ordered US Bank to pay $36 million related to a prepaid debit card used for distributing unemployment benefits during the COVID-19 pandemic. Reports indicate that banks had frozen accounts, preventing many unemployed individuals from receiving their payments.
In October 2024, the CFPB fined Apple $25 million due to the mishandling of transaction disputes with their credit card, which was launched in partnership with Goldman Sachs in 2019.
The CFPB confirmed that both US banks and Apple have settled their respective fines. However, they did not provide a rationale for retracting the remaining penalties, simply stating their authority to do so.
As this article was being published, the bureau had not yet responded to queries from American bankers.
The closure of these enforcement actions fits into a larger trend. Since the commencement of President Trump’s second term, the CFPB has dismissed or retracted many enforcement lawsuits, over half of which were inherited from the Biden administration.
In that same timeframe, the agency has initiated two enforcement actions. This contrasts with the Biden administration, which launched 13 enforcement actions in the first eight months of 2021.
“Those are significant numbers,” Fischer commented, “yet they lack anything new.”
Recently, regulators have been grappling with substantial budget reductions. In July, Congress passed a spending bill supported by Republicans that nearly halved the CFPB’s funding. Earlier this month, the agency cautioned employees of possible upcoming layoffs.
“The CFPB must keep evaluating workforce optimization options to align with the funding levels mandated by Congress, as the agency’s transfer cap from the Federal Reserve has been adjusted from 12% to 6.5% annually,” according to information obtained by an American banker. “This evaluation includes considering potential impacts of reduced staffing.”
This situation isn’t the first personnel-related challenge the bureau has faced. In April, nearly 1,500 CFPB employees—approximately 90% of the workforce—were let go under the Trump administration but were later ordered by federal court to be reinstated.
“The move to fire almost all employees overnight signals a desire to diminish the agency,” Fischer remarked. “It seems clear this is part of a broader assault.”
Neither Apple nor US Bank had responded to inquiries from American Banker by the time this article went to press.
