CFPB Under Trump Administration Adopts 'Ask-Nicely' Approach to Consumer Protection, Raising Concerns
Under the Trump Administration, the Consumer Financial Protection Bureau (CFPB) has shifted its strategy from aggressive enforcement to a more collaborative approach with financial companies. Russell Vought, former acting head of the CFPB and a top adviser to President Trump, testified in mid-July that he had refashioned the agency's method for addressing banks and financial firms accused of exploiting Americans. This new 'ask-nicely' strategy was highlighted in the CFPB's handling of issues with Bilt, a startup offering credit cards for rent and mortgage payments. After Bilt experienced a critical transition fumble, leading to customer confusion and financial stress, the Trump-era CFPB contacted the company, which then assured the bureau it had fixed the problems. The CFPB subsequently issued a positive statement on its website, touting its new approach. However, two weeks after Vought's testimony, Bilt customers faced a second fiasco, receiving mistaken debt collection notices and experiencing drops in t...
