Cases Closed: How the CFPB Dropped Consumer Investigations
From Capital One to Walmart – Why Major Corporate Investigations Disappeared During a Business-Friendly Shift
Capital One, Walmart: A Look at Consumer Cases Dropped by the CFPB During the Trump Administration
During the Trump administration, the Consumer Financial Protection Bureau (CFPB) significantly scaled back enforcement actions. Many investigations that were originally initiated to protect consumers from potentially abusive practices were quietly dropped. This article highlights major cases involving big corporations like Capital One and Walmart that were either shelved or abandoned entirely.
Capital One
The CFPB had been investigating Capital One for potentially deceptive marketing and selling of debt protection products. These products, often added to credit card accounts, promised to suspend payments if a consumer faced hardships like unemployment. Critics argued that these services were often worthless or difficult to use. Although similar investigations led to multi-million-dollar penalties against other banks, the CFPB dropped the case against Capital One without public explanation.
Walmart
Walmart faced scrutiny over how it handled money transfers through its Walmart MoneyGram service. Consumers reported being misled about fees, transfer speeds, and resolution of complaints. The CFPB had been examining whether Walmart violated federal consumer protection laws. Yet, under Trump-appointed leadership, the CFPB decided not to pursue the case further.
Other Cases Quietly Dropped
Beyond Capital One and Walmart, several other corporate probes were either closed without action or permanently shelved:
National Collegiate Student Loan Trusts: Accused of pursuing collections on loans without proper documentation. The CFPB stopped pushing the case.
Nations Lending Corp: An investigation into potential deceptive marketing in home loans ended without charges.
CashCall: A payday lender once fined under previous leadership had its ongoing probes dropped.
What This Means for Consumers
The CFPB was created after the 2008 financial crisis to be a watchdog protecting everyday consumers. By dropping investigations against major players, the bureau under Trump shifted focus from aggressive enforcement to a more business-friendly stance. This raises concerns among consumer advocates who argue that such leniency encourages corporations to ignore regulations without fear of consequences.
In Summary
Cases once aimed at holding big companies accountable have been shelved by the CFPB recently. Whether involving credit card protection scams, questionable money transfers, or debt collections without proof, many investigations designed to protect consumers simply vanished.