The Big Bank Protection Bureau
Payday predators get warm hugs, too
If you ever dreamed of a government agency dedicated to protecting the interests of America’s largest banks - and also taking into consideration the needs of legalized loan sharks - you are in luck.
Elon Musk’s DOGE effectively killed the Consumer Financial Protection Bureau (CFPB), as recent actions by the neutered agency make clear.
Adam Rust at Consumer Federation of America (CFA) explains the current situation:
On Wednesday, March 26th, the CFPB ignored the conclusions of a federal judge when it vacated a 2024 settlement with Chicagoland mortgage lender Townstone Financial. The CFPB said it would set aside the $105,000 civil penalty. It highlighted the sharp contrast between this CFPB and its predecessor from the first Trump administration. Enforcement policy under the new CFPB goes like this: It will send a refund to Townstone, but reverse payments to consumers who were due to receive redress from the recent enforcement actions against Zelle and Capital One.
Townstone will NOT pay a penalty.
Wronged customers harmed by the Big Banks that own Zelle will NOT get their money back.
Capital One victims - no cash for you!
This is Elon’s dream. It’s a big win for big banks - and for Elon’s new partners at Visa.
It’s a nightmare for Americans in the financial marketplace.
Advocate Andy now has more than 200 subscribers - thank you! If you aren’t yet a subscriber, consider becoming a free or paid subscriber today. Either way, take a moment to also like and share this post. Together, we can hold the robber barons at bay - a task more important now than ever.
While the CFPB may not be at full strength, you can take action in your state if you have a consumer protection concern.
First, start with your state’s Attorney General.
Attorneys General typically have consumer protection divisions and can apply relevant state laws to your situation. Sometimes, if an AG asks, a company will answer.
Second, let your Member of Congress know. One, they may be able to assist with a resolution. But also, it is important for Congress to know their constituents value the work formerly performed by CFPB. Congress can rescue the consumer champion from the DOGE Death Star . . . if they want to.