Days after the rule came into effect in January, the bureau was sued by NetCoice and Technet, two trading groups representing great technology. In addition to the challenge of the rule, the groups have accused the CFPB of illegally exceeding its mandate, claiming that the rule is a ‘breathtaking assertion of its own jurisdiction’.
The indefinite break of the CFPB with the writing of new rules and regulations can also benefit the benefit of Elon Musk, the declared goals of which include the X in a so-called ‘all-app’ that would also make payments. In January, X CEO Linda Yaccarino announced a partnership with Visa to create a digital wallet that could facilitate peer payments.
“First of very big announcements about X -money this year,” she wrote. ‘[Let’s fucking go.]’
Although Musk has not talked about these particular ambitions in recent months, he has intimidated that the reduction or elimination of the CFPB is a personal purpose. He hinted at this in November, shortly after Clips on X of the Joe Rogan podcast episode began circulating with the venture capitalist and fellow PayPal founder Marc Andreessen.
On the program, Andressen says the CFPB operates to “terrorize finance” and “prevent new competition”. In response to a cut of this on X, Musk said: “Delete CFPB. There are too many duplicating regulatory agencies. “
Vought’s command to Stop all work last week also made an immediate break on various active lawsuits.
On January 14, the CFPB filed a case with Capital One consumers, in which he claimed that the company had fraudulently marketed two almost identical-mentioned savings accounts with many different interest rates, which according to the agency claimed that the accounts of $ 2 billion were Interest was too much. A day later, it sued the operator of Cash app for $ 175 million, claiming that the company did not adequately process a number of complaints about customer payments to customers, adding that it could cheat them out of large amounts of money.
In December, it also filed a lawsuit against Walmart and payment processing tool branch messenger. The CFPB claims that drivers charged $ 10 million to fees when they tried to access their salaries. The same month, the bureau sued the company that Zelle runs – as well as banks JPMorgan Chase, Bank of America and Wells Fargo – because he allegedly failed to execute fraud measures or to investigate complaints of clients’ fraud.
None of these lawsuits can continue.
According to the former staff member, these lawsuits usually go to court for one to two years of investigation. These investigations involve the processing of complaints sent to the CFPB, interviews with corporate managers and the acquisition of internal documents through civil investigative claims, which are similar to a subpoena. If successful, the court may order a company to change its practices to comply with the law.
“To bring these things to a conclusion, to correct consumers and hold companies accountable with fines of civil money, with sanctions against their managers – everything is just interrupted,” they say.
When CFPB closes cases, this can lead to maintenance actions in which companies must repay their consumers. In these cases, the CFPB is also responsible for following up the company and making sure they reach their deadlines and enforce the decision effectively.