Sen. Elizabeth Warren said Thursday that the Trump administration's overhaul of the Consumer Financial Protection Bureau has cost Americans up to $26.5 billion. The Massachusetts Democrat released a report attributing most costs to moves by acting CFPB director Russell Vought to roll back rules capping credit card and overdraft fees. The report arrives as Vought faces a Senate oversight hearing Thursday on agency actions including dismissed enforcement cases and alleged removal of consumer data from the CFPB website.
Warren Report Attributes $26.5 Billion Cost to Fee Cap Rollbacks
In a report shared first with CNBC, Warren attributed up to $15 billion in consumer costs to the CFPB's decision to abandon a rule capping most credit-card late fees at $8. The agency previously estimated the regulation would save consumers roughly $10 billion annually. The report attributes another $7.5 billion to the repeal of the CFPB's overdraft fee rule, which would have limited many banks to charging $5 for overdrafts. The remainder of the estimate comes from the CFPB's decision to drop more than three dozen enforcement actions and settlements, totaling roughly $4 billion. Some of these actions were set to send payments directly to consumers.
Trump Administration Reduces CFPB Staffing and Enforcement
Since taking office last year, the Trump administration has slashed staffing at the CFPB, dropped or narrowed dozens of enforcement cases, and rolled back Biden-era rules. Officials describe the changes as refocusing the agency on its core mission. Republicans have defended the moves as necessary to rein in what they view as an overreaching regulator. Democrats led by Warren—who conceived and helped set up the agency after the 2008 financial crisis—have argued that the Trump administration has crippled a key consumer financial watchdog and exposed Americans to unfair or deceptive industry practices.
Senate Reviews Brian Johnson Nomination for Permanent Director
The Senate is weighing the nomination of Brian Johnson, a former CFPB deputy director turned Capital One executive, whom President Donald Trump tapped to lead the agency permanently. Ahead of Thursday's hearing, Warren sent Vought a letter cataloging what she described as unanswered congressional oversight requests during his tenure running the bureau. The White House and CFPB did not immediately respond to requests for comment.
FAQ
What did Sen. Warren claim about CFPB changes under Trump?
Sen. Elizabeth Warren said Thursday that the Trump administration's overhaul of the Consumer Financial Protection Bureau has cost Americans up to $26.5 billion. Her report attributes $15 billion to abandoning a credit card late fee cap, $7.5 billion to repealing an overdraft fee rule, and roughly $4 billion to dropped enforcement actions.
Why is Russell Vought facing a Senate hearing?
Acting CFPB director Russell Vought faces a Senate oversight hearing Thursday on actions including dismissing enforcement actions and consent orders, and an allegation that the agency recently removed 15 years of consumer data from the CFPB website. Warren's report focuses on fee cap rollbacks made under Vought's leadership.
Who is nominated to lead the CFPB permanently?
President Donald Trump nominated Brian Johnson, a former CFPB deputy director turned Capital One executive, to lead the agency permanently. The Senate is weighing his nomination as Democrats critique the Trump administration's changes to the consumer financial watchdog.
