Zinger Key Points
- Treasury Secretary Scott Bessent orders work to halt at the CFPB leaving several lawsuits in limbo.
- It is expected that Bessent will begin to roll back many of the regulations enacted under the Biden administration.
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Treasury Secretary Scott Bessent on Monday ordered a halt to the majority of work at the Consumer Financial Protection Bureau after being selected as the acting director of the agency by President Donald Trump.
The Details: According to a report from the Wall Street Journal, Bessent directed the CFPB to freeze much of its work in an internal email. The work stoppage includes decisions about active litigations, enforcement actions and suspends effective dates for completed rules that are not yet in effect.
Bessent is the temporary replacement for Biden appointee Rohit Chopra who was ousted from the agency on Friday.
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"I look forward to working with the CFPB to advance President Trump's agenda to lower costs for the American people and accelerate economic growth," Bessent said in a written statement Monday.
It is expected that Bessent will begin to roll back many of the regulations that were enacted under the Biden administration, including limits on overdraft fees and the exemption of medical debt reporting by credit agencies.
CFPB Actions In Limbo: Many lawsuits brought by the CFPB now face an uncertain future as decisions on litigations and enforcement actions have been frozen.
In late December, the CFPB sued Rocket Homes, a division of Rocket Companies, Inc. RKT in what it said was an action to stop the company from providing incentives to real estate brokers and agents to steer homebuyers to Rocket Mortgage.
JPMorgan Chase & Co. JPM, Wells Fargo & Co. WFC, Bank of America Corp. BAC and Early Warning Services also face a lawsuit from the CFPB alleging the companies rushed to complete the Zelle payment network in order to compete with Venmo and CashApp and neglected to enact effective fraud safeguards.
The CFPB also slapped Capital One Financial Corp. COF with a lawsuit in January accusing the bank of cheating millions of consumers out of more than $2 billion in lost interest.
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