Sen. Elizabeth Warren released a report Thursday estimating that the Trump administration's overhaul of the Consumer Financial Protection Bureau has cost American consumers up to $26.5 billion. The figure, first shared with CNBC, largely stems from the agency's rollback of rules capping credit card late fees and overdraft charges under acting director Russell Vought.
Breakdown of Consumer Costs
Warren's report attributes about $15 billion to the CFPB's decision to abandon a proposed rule that would have capped most credit card late fees at $8. The agency had previously estimated that rule would save consumers roughly $10 billion annually. Another $7.5 billion is tied to the repeal of the CFPB's overdraft fee rule, which would have limited banks to charging $5 per overdraft. The remaining $4 billion comes from the bureau dropping more than three dozen enforcement actions and settlements, some of which were set to send payments directly to consumers.
Political Clash Over Agency's Future
The report comes as Vought faces a Senate oversight hearing Thursday, where Democrats are expected to press him on the agency's direction. Since taking office, the Trump administration has slashed staffing, dropped or narrowed dozens of enforcement cases, and rolled back Biden-era rules, arguing it is reining in an overreaching regulator. Democrats, led by Warren who helped create the CFPB after the 2008 financial crisis, contend the moves have crippled a key consumer watchdog and exposed Americans to unfair practices. The Senate is also weighing the nomination of Brian Johnson, a former CFPB deputy director and Capital One executive, to lead the agency permanently. The White House and CFPB did not immediately respond to requests for comment.