NEW YORK (AP) — One year after the Trump administration took control of the Consumer Financial Protection Bureau, the consumer watchdog has largely retreated from enforcement and regulatory work, changes that consumer advocates and Democrats now estimate have cost Americans at least $19 billion in financial relief.
In a report provided to The Associated Press ahead of its release by the office of Sen. Elizabeth Warren on Monday, the authors say the CFPB harmed consumers by abandoning major consumer protections, stalling investigation and dismissing a number of lawsuits.
“Trump’s attempt to sideline the CFPB has cost families billions of dollars over the last year alone,” said Warren, the top Democrat on the Senate Banking Committee, as well as one of the bureau’s fiercest defenders in Congress.
The administration and congressional Republicans have argued that the bureau needed to be downsized and reined in because it had grown too large and overreaching.
The administration assumed control of the CFPB in February 2025 after Rohit Chopra, the bureau’s director under President Joe Biden, resigned, leaving White House budget director Russell Vought as acting director. Since then, few new investigations have been opened, many employees have been ordered not to work and several pending enforcement actions against financial companies have been dropped.
The White House announced in April that it wanted to reduce the Bureau’s staff from 1,689 positions to 207 positions, but that move has been blocked by courts. Even if the employees’ union does succeed in its lawsuit against Vought, Congress cut the bureau’s budget by roughly half in Trump’s One Big Beautiful Bill Act. It’s unlikely that all of those employees will still have their jobs once all litigation is settled.
“The CFPB may still be standing, but it’s essentially on life support,” said Chuck Bell, advocacy program director at Consumer Reports, in a statement. Consumer Reports put out its own data Monday that arrives at similar conclusions as Warren's office.
A spokeswoman for the CFPB did not respond to a request for comment.
One form of relief the report said consumers were denied was a limit on overdraft fees, which the Biden CFPB finalized in 2024 but the Republican-led Congress overturned last year. That would have saved consumers $5 billion a year, according to the Bureau’s estimates at the time.
The bureau also tried to cap the amount of money consumers pay to credit card companies when they pay their bills late. That would have saved Americans roughly $10 billion, according to Bureau estimates when the rule was proposed. The regulation was blocked by a federal court last year, and the bureau, under the control of the Trump administration, decided not to fight the lawsuit in court.
Another roughly $4 billion in consumer relief would have come from a series of lawsuits or settlements that were dismissed by the bureau under Acting Director Vought. For example, the bureau sued Capital One in January 2025 for $2 billion, days before President Trump was to be sworn into office, alleging that Capital One has misrepresented the interest rate paid on its savings accounts to customers. That lawsuit was dismissed.
The bureau also sued Early Warning Systems, the company that runs the money transfer service Zelle, in December 2024 for $870 million alleging that the EWS and the banks that operate Zelle were negligent in protecting consumers from fraud and scams. That lawsuit was also dismissed last year.
There's also been a slowdown in the number of complaints resolved by the bureau as well. The CFPB runs its own consumer complaint database, where a consumer can allege wrongdoing by their bank or financial services company and the bureau will act as intermediary between the consumer and financial company to resolve the complaint. Under the Biden CFPB, roughly half of all consumer complaints were resolved with relief for the consumer, whereas under the Trump CFPB, that figure has dwindled to less than 5%.
The independent Government Accountability Office made public a separate report Monday outlining its attempts to keep track of the Trump administration’s reorganization and restructuring of the CFPB. The GAO said it received no cooperation from the White House or the bureau, and the GAO needed to rely on mostly public records to produce its report. In a response to the GAO, the CFPB cited ongoing litigation between its employees and management as the primary reason why it could not cooperate.
The GAO’s report largely matches what has been documented in news reports that the bureau has cancelled dozens of enforcement actions against alleged wrongdoers, unwound rules and regulations that previous bureau management said would protect consumers or bring them financial relief. There have been even rules and regulations enacted during President Trump’s first term that have been targeted by the bureau’s current management.
Mark Paoletta, the bureau's chief legal officer and effectively its deputy director under Vought, called the GAO’s report “biased and flawed” in a letter to the agency did not raise any specific issues with its conclusions, other than to say the GAO was working with incomplete information.
FILE - A security officer works inside of the Consumer Financial Protection Bureau (CFPB) building headquarters, Feb. 10, 2025, in Washington. (AP Photo/Jacquelyn Martin, File)
