The Consumer Financial Protection Bureau (CFPB) has entered a period of significant upheaval following the dismissal of its director, Rohit Chopra, by President Donald Trump. With Scott Bessent stepping in as the acting director, a sweeping pause on all CFPB activities has been enacted. This includes halting enforcement actions, litigation, and rulemaking, effectively freezing any pending regulations. The Congressional Review Act may also be invoked to review and potentially rescind existing rules, impacting areas like open banking, overdraft fees, and medical debt reporting. Notably, a recent CFPB rule aimed at removing $49 billion in medical debt from credit reports is now in limbo. Additionally, rules regarding overdraft fees and data brokers are under scrutiny. The CFPB had been expanding its oversight of digital payment firms and classifying buy now, pay later (BNPL) services as credit providers, but these initiatives may now face significant delays or reversals.
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