NEW YORK (AP) – The Consumer Finance Protection Agency has repealed several enforcement measures against companies such as Capital One and Rocket Holmes.
In a voluntary fire that was filed Thursday, the CFPB dropped lawsuits against Capital One, Rocket Homes and Vanderbilt’s mortgages and finance.
All of these cases were filed under Rohit Chopra, the former director of an agency that President Donald Trump fired a few weeks ago. The CPFB then plunged into confusion. The White House later ordered it to be stopped, closing its headquarters and fired the workers’ scores.
Trump defended the administration’s broadside against the CFPB. This includes recent claims about institutions “established to destroy people.” He has been appointed Jonathan McCernan, a former board member of the Federal Deposit Insurance Corporation, as the new director of the agency, facing a Senate committee hearing Thursday.
The CFPB is accused of creating rules and taking enforcement measures to protect consumers from unfair, deceptive or abusive practices by a wide range of financial institutions and businesses. The agency says it has acquired nearly $2 billion in financial relief for U.S. consumers since its inception in the form of cuts in cancelled debt, compensation and loans.
Legal measures from the CFPB often include banks, mortgage services, credit card companies, student loan processors, payday lenders, remittance transfer providers, credit reporting agencies, and debt collectors.
Last month, CFPB sued Capital One against a consumer who was misleading about offering a high-profit savings account. The bureau has denounced the customers who lost more than $2 billion as a result of “cheating” big customers. Meanwhile, the lawsuit against Vanderbilt’s mortgage filed last month also accused the company of pushing consumers into loans they couldn’t afford. CFPB’s December complaints against Rocket Homes also allegedly claiming a “kickback scheme” from the company, leading future borrowers illegally to rocket mortgages operating under the same parent company, away from other competitors.
However, on Thursday, Rocket Holmes court case said “The Consumer Financial Protection Agency will dismiss this case with prejudice against all defendants.” Similar language was used in the firing of CFPB’s Capital One and Vanderbilt Mortgage Suits.
In a statement Thursday, Rocket Holmes welcomed the fire, saying, “It’s good to see the truth uncovered” — calling it “an empty claim brought by former CFPB director Chopra for the sole purpose of seeing his name during the final day of civil service.”
Capital One also welcomed CFPB’s decision on Thursday, noting that it “strongly objected” the lawsuit filed against the company.
The Associated Press also contacted Vanderbilt’s mortgage for comments.
Original issue: February 27, 2025, 2:54pm EST
