The Consumer Financial Protection Bureau (CFPB) has dropped cases against several companies, including Capital One, Rocket Homes, and a student loan servicer. The bureau had previously accused these companies of hurting consumers.
In January, the CFPB sued Capital One for allegedly cheating millions of customers out of billions of dollars in interest payments. However, just weeks later, the agency decided to drop the case. This decision is seen as part of a hands-off approach to regulation from the Trump administration.
Jonathan McKernan, President Donald Trump’s pick to head the CFPB, faces questions from US senators during a confirmation hearing on Capitol Hill. Senator Elizabeth Warren noted that the timing of the announcement seems designed to embarrass McKernan and show who is in charge of the agency now.
The CFPB also dropped cases against Vanderbilt Mortgage and Finance, which was accused of pushing borrowers into “unaffordable loans.” The bureau alleged that Vanderbilt knowingly traps people in risky loans. Additionally, the agency voluntarily dismissed a case against Rocket Homes and The Jason Mitchell Group real estate brokerages, which were accused of an illegal kickback scheme.
The decision to drop cases comes as the CFPB is facing challenges under new leadership. Trump-appointed officials have ordered staff to halt all work, including fighting financial crime. This move is seen as part of a broader effort to sideline the CFPB led by Elon Musk’s Department of Government Efficiency (DOGE).
Shares of Capital One and Rocket Companies climbed more than 1% on Thursday morning after news of the dropped cases.
Source: https://edition.cnn.com/2025/02/27/business/cfpb-elon-musk-capital-one-student-debt/index.html