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More than $360 million in CFPB compensation 'at risk,' say US consumer groups
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More than $360 million in CFPB compensation 'at risk,' say US consumer groups
Jul 29, 2025 8:35 AM

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.

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