Consumer advocates and allies say they are bracing for sweeping changes to one of Washington’s newest financial watchdogs under President-elect Donald Trump, who has promised sweeping regulation of the companies that manage Americans’ money.
The Consumer Financial Protection Bureau is weighing proposed rules on its agenda to finalize before Republicans regain control of the House, Senate and White House in less than two months, sources told NBC News.
During Trump’s first term, the CFPB, the brainchild of Sen. Elizabeth Warren, created under the Federal Reserve after the 2008 financial crisis, has also provided some wins for consumers. To them a $1 billion settlement with Wells Fargo after the fraudulent account opening scandal, as well as the fight against data breaches.
But that’s what the Republicans have been doing lately pointed to the plans tarnishing the agency and there’s Trump The authors of Project 2025 were named – to positions of authority – calling for the abolition of the CFPB. On Wednesday, billionaire Trump donor Elon Musk, who a high-level cost-cutting role is envisaged, placed X on his social platform: “Delete the CFPB.”
“I would expect a regulatory approach to the rules and also an effort to repeal the agency itself,” said Adam Rust, director of financial services at the Consumer Federation of America, a network of advocacy groups.
Jesse Van Tol, who heads the National Community Reinvestment Coalition, which focuses on creating wealth in underserved communities, said, “Eviscerating the CFPB is an open invitation for the worst actors in our economy to start hurting working people again.” He called the agency “the most effective defender of working-class wallets in modern American history.”
CFPB Director Rohit Chopra, who consumer advocates expect will be replaced after Trump takes office, has overseen an aggressive tenure at the agency. Pawned back about $20 billion issued a series of rules and guidelines aimed at consumer convenience and curbing financial institutions.
The financial services industry carries out many of these efforts. The past four years “have seen the CFPB eschew fact-based policy and instead engage in political campaigning,” Lindsey Johnson, president and CEO of the Consumer Bankers Association, said in a statement.
He said that the Biden administration fight against unnecessary paymentsfor example, “was based on a political poll designed to prop up a re-election campaign rather than actual data on consumer harm. This has resulted in a series of policies, some of which the current CFPB is rushing to finalize, that will increase costs for nearly all Americans and ultimately drive many Americans out of the bank.
The White House has argued otherwise — its efforts are aimed at reducing inflationary banking practices and customer costs. A spokesman for Trump’s transition team did not respond to a request for comment.
Some of the CFPB’s rules, including one given last week Expanding controls on digital payment apps like Apple Pay and Venmo already have GOP support and won’t be repealed, experts say. Financial policy advisor to Vice President JD Vance after the rule was finalized X thanked the agency To “end the unbanking of conservative and conservatively coded industries.”
Agency leaders face tough choices between now and Inauguration Day, consumer groups say: They can either race to provide more protections — if they are repealed under the law. Congressional Oversight Actwill prevent future officials from proposing similar ones — or stall, hoping Republicans will let the well-received leadership stand.
CFPB officials know they won’t be able to get their work done for the next four years, according to a person familiar with the leadership’s thinking who was not authorized to discuss it publicly. But the current administration’s moves may be more permanent than some in the industry expect, the person said. The agency staff’s recent efforts have required patience, resources and prioritization — especially amid intense legal pressure — and their Trump successors may find the same, the person said.
The agency declined to comment on the memo, but said it “continues to conduct its work separate and apart from political cycles.”
Like everything else in Washington, much of what happened next was about politics. Here’s what experts say could change.
Overdraft restrictions and insufficient fund fees
Consumer advocates say the most significant potential change will affect how much consumers pay for bank overdrafts.
In September, the CFPB reinforced the government’s ability to penalize banks that charge insufficient funds from customers makes it clear that such commissions require registration under the Electronic Funds Transfer Act. While many big banks have backed away from the practice in recent years, it’s unclear whether the reprieve will come for customers at smaller banks — some of which have sued in response.
“It’s really where the rubber hits the road because everybody has too much money,” Rust said. “This is not some complicated, arcane financial protection issue with a rule that you have to know to understand.”
Therefore, experts say that the new administration campaigning with a “populist” agenda may leave the leadership alone.
Late credit card payments
Attorneys and lawyers say the chances of a previous ruling limiting credit card fees are slim to none.
Released In March, the move lowered the limit from $32 to $8, prompting a rapid delinquency. The case is pending before the federal court system card issuers dispute the changes will force them to pass on higher costs to customers, including those who pay their bills on time.
Oliver Contreras/The Washington Post/Getty Images
“You may very well see the future CFPB decide to let the free market decide these fees and come back [to] don’t keep that $30 cap at $8 and strongly defend that case against an industry-imposed rule,” said Armen Meyer, a financial policy consultant who has worked as both a fintech industry executive and bank regulator.
A return to a more accessible approach could renew complaints raised by consumer advocates during Trump’s first term. At the time, the CFPB director Mick Mulvaney faced criticism because of their actions, they saw a weakening of protection for borrowers.
Buy now, pay protection later
Like BNPL services its popularity skyrocketed during the pandemicthe agency quickly erected protective bars around them. But in the absence of new legislation, the CFPB has determined that installment loan services must follow the same rules as credit card issuers.
That would likely result in a breakdown of those protections, Meyer said.
“I think most people would agree on the general point,” he said concerns about overspending and potential exploitation. “The industry will disagree about how it’s done, it makes them feel inadequate and it makes it harder for them to do their jobs.”
The the rule It allowed users of services such as Klarna and Affirm to dispute charges and request a refund after returning purchases. Chopra announced in September that the measure would be based on “good faith” for the time being, and that violations during the transition would not be penalized.
Removing medical debt from credit reports
This summer, the agency he suggested prohibits medical debt from appearing on consumers’ credit reports. And in October warned the companies against seeking payment on inflated or unverified bills—it would be burdensome to cause another lawsuit from debt collectors who claim to comply.
The agency estimated that the medical debt movement would remove up to $49 billion from 15 million credit reports. Legal professionals CFPB watchers say the agency will likely finalize the proposal before Trump takes office; Reuters agency reported on this on Wednesday Citing informed sources about the issue, they said that the officials are working for this. That would leave the measure vulnerable to congressional review, but it remains unclear how the next director will approach it.
The CFPB declined to comment on the adoption of the medical debt rules, but said it “continues to conduct its work separate and apart from political cycles.”
A source familiar with the agency’s decision-making said some state regulators will take the lead on the issue in the coming months, with Colorado and New York recently imposing restrictions on medical debt reporting.
California Attorney General Rob Bonta made a similar proposal legislation one sent this year and later letter He applauds the CFPB for laying the “groundwork for consumer protections” and allowing states to adopt stronger ones.
As in other policy issues — from immigration and reproductive rights for emission mandates — The rules surrounding Americans’ finances may increasingly depend on where they live.