Russell Vought, director of the candidate at the Management and Budget Office (OMB) for American President Donald Trump, during a confirmation audience of the Senate budget committee in Washington, DC, United States, Wednesday, January 22, 2025.
Al Drago | Bloomberg | Getty images
THE Consumer financial protection officeThe new management of the new management rejected at least on Thursday in terms of application initiated by the director of the previous administration.
In legal documents, the CFPB issued a voluntary dismissal notice for cases involving Capital One; Berkshire Hathaway Vanderbilt Mortgage & Finance; A Cos. Unit called Rocket Homes Real Estate; and a loan agent named Pennsylvania Higher Education Assistance Agency.
“The applicant, the Consumer Financial Protection Bureau, rejects this action against all defendants with prejudice,” said the agency in the Capital One case. He used a similar language in other cases.
The moves are the last signs of the agency’s abrupt quarter since the acting director of the CFPB, Russell Vought, took over this month. In collaboration with the Elon Musk Government Ministry of Government, the CFPB has closed its headquarters in Washington, dismissed around 200 employees and said to those who remain to stop work almost all.
Under former director Rohit Chopra, the CFPB accused the capital, one of the customers who destroy themselves on more than $ 2 billion in interest; He said Vanderbilt ignored the signs that customers could not afford his mortgages; He accused Rocket of having provided illegal bribes to real estate agents; And he said that this loan service Pennsylvania Higher Education Assistance Agency poorly collected loans.
A capital spokesperson One said that the bank had greeted the rejection of his case, which he “strongly disputed”.
A Rocket spokesperson has also welcomed the news: “Rocket Homes has always connected buyers with the most efficient agents based solely on objective criteria such as the way they have helped buyers realize their dreams. We are proud to put this behind.”
The capital shares One and Rocket climbed after layoffs.
Lost billions
Current and former CFPB employees told CNBC that legal affairs with upcoming dates would probably be rejected because the agency disavows most of what Chopra has done.
Who started at the end of last week when the agency rejected his case against Solo Funds, a fintech lender whom he had previously accused of searching customers.
Eric Halperin, the former CFPB application chief, said in a telephone interview on Thursday that the CFPB license series was unprecedented in the history of the office.
“Five cases have been rejected so far by this administration, while in the entire history of the office, there has been only another case rejected without reparation for consumers,” said Halperin.
Since recent cases have been dismissed with prejudice, the CFPB agreed to never bring these claims again, by closing the possibility of recovering funds for consumer assistance, he added.
“Just from the cases that have been rejected today, billions of dollars in consumer damage that the CFPB can never come back for consumers,” said Halperin.
‘You embarrass
Thursday’s deposits began to appear at the same time as the senators made Jonathan Mckennan, President, toast The choice of Donald Trump to direct the CFPB on a permanent basis, during an audience on the appointment.
“Mr. McKernan, literally while you were sitting here and you talked about the importance of following the law, we learn that the CFPB abandons prosecution against companies that deceive American families, or who cheat on American families,” said senator Elizabeth Warren, D-MASS., said.
“It seems to me that the time of this announcement is designed to embarrass yourself“Said Warren.
