A few days after the rule in the rule in January, the office was prosecuted by Netchoice And TechnicianTwo commercial groups representing Big Tech. In addition to challenging the rule, the groups accused the CFPB of illegally exceeding its mandate, alleging that the rule is “a statement of the breath of its own jurisdiction”.
The indefinite break of the CFPB on the drafting of new rules and regulations could also benefit Elon Musk, whose Declared objectives Include Turning X in a so-called “Application all that” which would also make payments. In January, the CEO of X Linda Yaccarino announced a Partnership with Visa To create a digital portfolio that can facilitate peer payments.
“First of all, many announcements on X Money this year,” she wrote. “”[Let’s fucking go.]””
Although Musk has not spoken publicly about these specific ambitions in recent months, he has suggested that the decrease or elimination of the CFPB is a personal objective. He alluded to this in November, shortly after the clips began to circulate on X from the episode of the Podcast Joe Rogan with a venture capital and colleague co-founder of Paypal Marc Andreessen.
In the show, Andreessen says that the CFPB works to “terrorize finance” and “prevent new competition”. Respond to a clip of this on X, Musk said“Remove CFPB. There are too many double regulatory organizations. »»
Vought order to Halt all last week’s work also paused for several active proceedings.
On January 14, the CFPB complaint For Capital One consumers, alleging that the company has misleaded two almost identical savings accounts with very different interest rates, which, according to the agency, has resulted in overloading the holders of accounts of accounts $ 2 billion in interest. A day later, He continued the operator of the cash application For $ 175 million, alleging that the company has not adequately dealt with a number of customer complaints concerning unauthorized payments, adding that it allowed them to be frauded with huge sums of money.
In December, he also filed a complaint Against Walmart and Messenger of the Branch of Payment Processing Tools. The CFPB allegedly alleged that drivers were billed by $ 10 million when they tried to access their payroll checks. The same month, the office continued The company that manages Zelle– as well as JPMorgan Chase, Bank of America and Wells Fargo banks – for not having implemented fraud guarantees or investigating customer fraud complaints.
For the moment, none of these proceedings can continue.
According to the former staff member, these prosecutions generally go to court after one to two years of investigations. These surveys concern the treatment of complaints sent to the CFPB, the interview of business leaders and obtaining internal documents through requests for civil investigation, which is Similar to a assignment. Once successful, the court can order a company to modify its practices to comply with the law.
“The conclusion of these things to give consumers to repair and keep companies responsible for civil money penalties, with sanctions against their leaders – all this is now on break,” they say.
When CFPB cases end, they can lead to application measures in which companies must reimburse their consumers. In these cases, the CFPB is also responsible for following the company and ensuring that they reach their deadlines, effectively applying the decision.
