Consumer advocacy groups predict that Trump administration policies to reduce Consumer Financial Protection Bureau authority will result in at least $18 billion worth of increased fees and abandoned enforcement compensation losses for Americans.
The Student Borrower Protection Center together with the Consumer Federation of America published a report which shows the Trump-era CFPB reduced oversight while dismissing important cases and failed to distribute funds that belonged to wronged consumers. The president’s living cost reduction promises face opposition from the changes his administration implemented according to these groups.
The administration has pursued two main objectives for the agency since February by planning to cut its workforce by 90% and reduce its enforcement capabilities. Financial firms now face reduced protection against abusive practices because of the criticism from critics.
The report demonstrates how the Trump administration reversed multiple policies from the Biden administration including proposals to limit credit card late fees and overdraft charges. The elimination of these regulations would result in annual financial losses of $15 billion for consumers.
The dismissal of 22 enforcement cases against major banks resulted in a loss of $3 billion worth of potential compensation for consumers.
The administration asserts the CFPB exceeded its authority but advocates maintain deregulation has forced consumers to bear additional financial costs while institutions remain unaccountable.
