A U.S. district court convened a two-day hearing last week in the National Treasury Employees Union’s lawsuit aimed at stopping an effort by the Trump administration to greatly diminish the CFPB. The judge extended a freeze on contract terminations by the CFPB while contemplating a ruling on a preliminary injunction.
It typically takes the CFPB less than one day to process a consumer’s complaint and send it to the company identified in the complaint. After the Trump administration disrupted operations at the bureau, the average complaint processing time temporarily jumped to six days.
District court denies request from CFPB to pause litigation against Comerica Bank; CFPB drops lawsuit against Zelle; lawsuits involving Military Lending Act moving forward; CFPB stays on case with state AGs; CFSA seeks ruling from Supreme Court on payday loan rule.
CFPB Director-nominee Jonathan McKernan at his confirmation hearing promised to perform the statutory functions of the bureau. But he didn’t directly respond to the question of whether he agrees with President Trump’s statement that it’s important to “get rid of” the bureau.
All work at the CFPB, including supervision and examination activities, has ceased following an order by the bureau’s new acting director. Several rulemakings are also on pause.
Going by Trump’s first term, the CFPB is expected to continue to regulate by enforcement, but isn’t likely to expand its jurisdiction into questionable areas.
If the overdraft rule is adopted as proposed, banks would materially reduce the amount of liquidity they are able to offer consumers, according to the Consumer Bankers Association.
In the final weeks before the new Republican administration takes over, the CFPB’s rulemaking process is expected to slow, but enforcement activity could increase, according to industry attorneys.
The bureau’s advisory opinion on medical debt collection practices violates the Administrative Procedure Act as it creates new rules, according to an association representing credit and collection professionals.
The bureau released guidance that details employers’ responsibilities and consumer protections under the FCRA involving worker surveillance technologies.
Christopher Stanley, a security engineer at SpaceX, is the first member of Elon Musk’s Department of Government Efficiency to join a GSE board.
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