EPIC Condemns Withdrawal of CFPB Safeguards on Privacy, Fairness, Transparency, and Equity in Financial Markets

This morning, the Trump Administration continued its assault against consumers by withdrawing nearly 70 key guidance documents previously issued by the Consumer Financial Protection Bureau (CFPB) to protect the public. The documents—consisting of policy statements, interpretive rules, advisory opinions, and circulars adopted since 2011—clarify the obligations of financial institutions under consumer financial protection laws and how those laws are enforced by the CFPB. Withdrawing these documents signals that the CFPB will no longer pursue enforcement against companies which violate critical consumer protection safeguards previously established by the Bureau.

Among many others, the withdrawn guidance documents include:

• A policy statement clarifying the CFPB’s stance on abusive practices;
• A policy statement about the CFPB’s public disclosure of consumer complaints about credit cards;
• Interpretative rules about how states can coordinate with the CFPB to enforce the Fair Credit Reporting Act;
• An interpretative rule stating that the CFPB has authority to conduct examinations at financial institutions to uncover risks to servicemembers and their families;
• An interpretive rule clarifying that the Equal Credit Opportunity Act prohibits discrimination on the basis of sexual orientation and gender identity;
• An advisory opinion focusing on fairness in medical debt collection;
• A guidance document clarifying that employers may not use algorithmic scoring or background dossiers without adhering to the Fair Credit Reporting Act;
• A guidance document about data security requirements for financial institutions; and
• A guidance document stating that creditors that make decisions using complex algorithms must give specific reasons to individuals whose credit applications are denied.

Today’s withdrawal of CFPB guidance is only the most recent attack in a long campaign to unlawfully shut down the CFPB. On April 17, a Department of Government Efficiency (DOGE) operative attempted to lay off 1500 out of the 1700 remaining employees at the Consumer Financial Protection Bureau (CFPB). The attempted mass layoffs were illegal, and in response, the U.S. Court of Appeals for the District of Columbia Circuit reinstated a stay that prohibits the CFPB from conducting mass layoffs. In February, Trump administration officials ordered CFPB staff to cease all supervision and examination activities. The CFPB has also abandoned many of its ongoing enforcement actions, dismissing a number of suits filed by the CFPB against companies alleging violations of consumer financial protection laws.

EPIC strongly opposes the Trump Administration’s attempts to halt the CFPB’s work to protect consumers in the financial services industry. Congress passed the Dodd-Frank Act, which created the CFPB, in 2010. This authorizing legislation includes a number of responsibilities that the CFPB must perform, including responding to consumer complaints in a timely manner and conducting routine supervision of both depository institutions (banks) and non-depository institutions (nonbank financial institutions, such as private lenders).

But current CFPB leadership is making it impossible for the CFPB to fulfill its statutory obligations by trying to fire most of the CFPB staff, abandoning enforcement actions, directing CFPB staff not to perform many of the Bureau’s critical functions, allowing DOGE operatives to access sensitive financial data, and issuing a guidance withdrawal document stating that the CFPB will “deprioritize enforcement against regulated parties whose conduct does not adhere to the guidance.”

“The guidance withdrawn today was issued by the CFPB to promote privacy, clarity, transparency, fairness, and equity in financial markets,” said EPIC Law Fellow Caroline Kraczon, “By withdrawing CFPB guidance, the Trump Administration sends a clear message that abuse by financial institutions against consumers will be tolerated—or even welcomed.”

Since its creation, the CFPB has obtained over $21 billion dollars in reimbursements and forgiven debt for consumers.