And so it begins. President Trump lied when he said he would help and support everyday Americans. Too bad voters believed his lies and propaganda.
The Consumer Financial Protection Bureau under Trump’s appointees permanently dismissed the agency’s enforcement action on Friday against Solo Funds Inc., a fintech provider that facilitates short-term small dollar lending and misrepresented the true cost of its product.
This is the first action dismissed by the CFBP’s new administration, which has signaled that it intends to walk away from all of the agency’s 38 pending cases. Acting Director Russ Vought praised the dismissal on X, claiming that Solo Funds provided an “innovative solution” and the CFPB’s lawsuit was “wrong.”
The Consumer Federation of America, a consumer advocacy group, released a statement Monday, criticizing the dismissal:
“Solo Funds lied to its customers, plain and simple, and California, Connecticut and Washington D.C., have all also pursued Solo for its clearly fraudulent scheme. Acting Director Vought is putting on political blinders in order to please the President and Elon Musk if he cannot acknowledge these obvious violations of law,” said Erin Witte, the CFA’s director of consumer protection. “The 2008 financial crisis was caused by lenders touting ‘innovative’ financial products, and our country is headed for another economic meltdown if we continue to cripple the CFPB.”
Acting CFPB Director Russell Vought – key architect of the right-wing Project 2025 playbook – has further undermined the agency’s mission, refusing to comply with nearly 90 congressional mandates designed to protect consumers and halting 38 pending CFPB enforcement actions. Dozens of staff – including the student loan ombudsman – have been illegally fired, and the agency’s headquarters has been shuttered for weeks.
Background
The CFPB is the nation’s top watchdog protecting Americans against predatory lenders and corporate fraudsters. Elon Musk and his Department of Government Efficiency or DOGE have taken over the CFPB, including gaining access to sensitive data and confidential supervisory information that the CFPB gathers from companies in order to keep consumers safe. Vought has also brought the oversight work of the consumer protection agency to a halt, closing the headquarters offices and directing staff to stay home.
Created after the 2008 financial crisis, Congress gave directives to establish offices and programs dedicated to protecting consumers, to issue regulations to govern some financial industries, and to ensure transparent access to information about consumer financial products.
Since opening its doors, the CFPB has obtained more than $21 billion in relief for over 205 million people from companies that illegally cheated consumers. This includes more than $5 billion in relief for Americans with student debt, and uncovering evidence that led to the U.S. Department of Education cancelling $188.8 billion of student debt for 5.3 million borrowers.
The CFPB has been at work over the last decade and is popular among Democratic and Republican voters, and the agency has received support across many different sectors, Witte said.
She said, in addition to returning billions of dollars back to the pockets of consumers, the CFPB has issued regulations that promote fairer and more competitive credit markets, and investigated hundreds of businesses that rip off members of the military, students, seniors, and everyday Americans.
Final thoughts
Let’s hope the courts can stop this takeover of an effective consumer financial agency.
I’d guess that during Trump’s administration only state & local gov’ts (if they do) will take action against corporate fraud. In other states, laws will be passed (already has happened) to “protect” corporations, tort reform (i.e. limitation of the amount of damages, including punitive damages that can be awarded) has meant that, in states like TX, some types of tort litigation are rarely brought anymore–lawyers can’t earn a large enough fee to risk the costs & time it takes to do that type of litigation. The governor of GA is working to pass similar laws: https://www.augustachronicle.com/story/news/state/2025/02/21/republican-controlled-georgia-senate-passes-tort-reform-kemp-priority/79453132007/
If Trump appointees take any action it will be to try to stop the states from taking action that might damage the interests of the ultraweallthy (that may :eby xecutive orders/legislation include blocking unionization//further weakening or abolishig NLRB, etc). Any political changes (i.e., positive ones) will be at the state level and perhaps in larger cities and perhaps some rural areas–just depends, I know some Oregon wheat farmers are unhappy/worried because of the end of federal dollar supported food assistance to “vulnerable” nations (i.e, people malnourished/starving) )https://www.chronline.com/stories/pnw-wheat-farmers-brace-for-boomerang-effects-of-trumps-international-aid-program-freeze,375895 . Perhaps if they easily find other buyers at the same price or higher, then their support (if they do support Trump’s administration) will continue. At one time the Grange movement had some power in the US, it could happen again, if smaller/”family’ farmers organize, maybe.
This administration is all about further enrichment of the rich and that’s all it’s about. Allying itself with other autocrats is to be expected because it’s easier for autocrats to enrich themselves & whoever they favor. Trump’s personal wealth has already greatly increased. That’s what he’s about, power & wealth–that’s been clear since at least his first administration (whatever happened to that wonderful replacement for “Obamacare”? I hear it’s been reduced to a “concept” again this time around). I could never figure out why he was ever considered to be a populist, except that, for some reason, the mass media has confused “demogogue” with “populist”. Popilists act in the interest of the people/the public, the non-wealthy or ultra wealthy elite.
You are absolutely correct. All Trump cares about is he and his friends getting richer. Power and wealth. It’s sickening.