WASHINGTON, July 29 (Reuters) - Recent actions by the
U.S. Consumer Financial Protection Bureau have reversed
or jeopardized more than $360 million in compensation paid to
consumers allegedly harmed by financial companies, an analysis
by consumer groups said on Tuesday.
The compensation relates to allegations of predatory
practices by lenders, student loan servicers, money transfer
businesses and others pursued by the CFPB in recent years.
The latest estimate - from the Consumer Federation of
America and Student Borrower Protection Center - adds to what
critics of President Donald Trump's administration say is the
mounting cost to ordinary people from his clampdown on the CFPB.
Last month, the two organizations also said the CFPB's
rollback of regulations on overdraft and credit card late fees,
and the dismissal of enforcement cases would increase consumer
costs by $18 billion.
Representatives of the CFPB did not immediately respond to a
request for comment.
The agency's current leaders have said they are changing the
agency's focus and have criticized prior enforcement actions as
politicized and unfair attacks on free enterprise. The agency
now says it can meet its obligations under the law with about
90% fewer employees.
According to the analysis released Tuesday, recent CFPB
actions to revise or cancel consumer payouts due from
settlements dating back as far as 2023 with Navy Federal Credit
Union, the lending arm of Toyota ( TM ), National Collegiate
Student Loan Trusts and the money transfer company Wise together
account for more than $120 million.
The authors, former top CFPB officials Eric Halperin and
Allison Preiss, say these reversals cast doubt on dozens of
other prior cases involving more than $244 million in further
consumer payouts that the CFPB may have yet to approve or
process, such funds arising from actions against Cash App parent
Block and student loan processor Navient ( NAVI ).
Congress created the CFPB after the 2008 financial crisis to
protect consumers from unfair, deceptive or abusive practices. A
federal appeals court in Washington has yet to decide on the
legality of the CFPB's attempt this year to dismiss the vast
majority of its staff.