The CFPB says it will 'deprioritize' protecting student borrowers, people with medical debt
Source: Yahoo! Finance
Updated Thu, April 17, 2025 at 11:10 AM EDT
The Consumer Financial Protection Bureau will “deprioritize” efforts to protect student borrowers and people with medical debt, as well as oversight of popular digital payment platforms such as Venmo and Zelle, its leadership announced in a memo Wednesday night.
The note outlining the agency’s new enforcement and supervision priorities under the Trump administration was written by Chief Legal Officer Mark Paoletta and first reported by The Wall Street Journal. It details plans to broadly dial back regulatory efforts and focus most of its remaining energy on large banks instead of tech firms, student loan servicers, and other financial companies that had consumed much of its attention during Joe Biden’s presidency.
The plan would mark a major change in direction for the CFPB, which was created in 2010 in the wake of the housing crisis and Wall Street meltdown that had paralyzed the nation’s economy. The new agency was given the job of enforcing consumer protection laws against the country’s large banks, as well as non-bank financial institutions that previously fell into a regulatory blind spot but were responsible for some of the riskiest lending and most predatory practices heading into the crisis.
In recent years, some of the bureau’s most high-profile efforts have involved policing those non-banks. It has played a particularly central role policing student loan servicers, the massive government contractors responsible for collecting monthly payments from borrowers that have long been a magnet for customer complaints.
Read more: https://finance.yahoo.com/news/the-cfpb-says-it-will-deprioritize-protecting-student-borrowers-people-with-medical-debt-151021551.html
From here (Xitter post per OP article) -
Link to tweet
@schwartzbWSJ
NEW: Take a look at the CFPB's new direction in a memo sent to staff this evening. Some key changes worth reading with the agency being run by acting CFPB director @russvought
. Trump's nominee to run the CFPB, Jonathan McKernan, has yet to receive a full Senate vote.
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6:27 PM · Apr 16, 2025
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