By AP Business Writer Ken Sweet
NEW YORK (AP) — Nearly six months after the Trump administration took control of the Consumer Financial Protection Agency, the bureau’s leadership has been largely focusing on removing penalties, fines, fines, fines and fines for businesses during the Biden administration.
In some cases, businesses that are supposed to refund or fine customers for unfair or deceptive practices will no longer be the whole customer. Other companies facing alleged fraud in deceptive practices had their lawsuits fallen early in the Trump administration.
Here are some of the Trump administration’s rollbacks:
Navy Federal Credit Union
The CFPB denounced the country’s largest credit union, the Navy Federal Credit Union, and was responsible for unfair and deceptive overdraft fee practices. The NFCU has settled the department and members agreed to refund $80 million in overdraft fees. However, when the new administration took over, the NFCU asked to reject the order. The Navy Federation has not said whether to refund members, primarily men and women in the service, families and veterans.
Reducing overdraft fees
The CFPB has proposed new regulations that will reduce overdraft fees to $5 from an industry average of $27. The regulations focused on the Bureau’s analysis of what banks actually cost to make short-term loans to customers to cover those purchases when their accounts go negative. The banking industry has lost billions of dollars of overdraft revenue, but banks have been shunning overdraft fee revenue for years. The restrictions were overturned in April by a Republican-controlled Congress.
Capital 1
On the last day of the Biden administration, the CFPB sued the bank’s huge capital allegedly deceived customers from $2 billion interest payments in savings accounts. This case included products that were sold with capital, which banks were sold as 360 savings. Capital One was unable to tell some customers that they had another product with a higher savings rate. The incident was dropped within days of the Trump administration taking over the bureau.
Walmart
The CFPB filed a lawsuit against Walmart and Workforce Company Branch Messenger in December, accusing the company of allowing delivery drivers to open accounts at branches on a delivery basis so that employees can access wages instantly. However, the CFPB said these branch accounts come with high fees and deceptive marketing, saying Walmart and branches should return $10 million to the harmed drivers. Both Walmart and Brunch denied the charges. The lawsuit was dropped by the CFPB in the first few weeks of the Trump administration.
Zel
Zelle’s parent company, the peer-to-peer payment system, and some of the country’s largest banks were sued by the CFPB late last year, failing to protect hundreds of thousands of consumers from Zelle’s ramp extension fraud in violation of consumer finance laws. In the CFPB lawsuit, hundreds of thousands of customers claimed that they lost roughly $870 million in funds due to fraud in the seven years Zell was in existence. The lawsuit was dropped by the CFPB in March.
Original issue: July 15th, 2025, 12:13pm EDT
