• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

3

Ikea’s billionaire founder was so frugal that he bought clothes from flea markets and took free salt and pepper from restaurants

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

3

Ikea’s billionaire founder was so frugal that he bought clothes from flea markets and took free salt and pepper from restaurants
Finance

Donald Trump Is Targeting an Agency That Has Recovered $11.8 Billion for Consumers

Lucinda Shen
By
Lucinda Shen
Lucinda Shen
Down Arrow Button Icon
Lucinda Shen
By
Lucinda Shen
Lucinda Shen
Down Arrow Button Icon
January 27, 2017, 7:30 AM ET
Add Fortune on Google for similar content.

Within days of being sworn in, President Donald Trump has already pledged to cut business regulations by 75%. One way he is likely to fulfill that promise, at least in part, is by defanging a legacy of the 2008 financial crisis: the Consumer Financial Protection Bureau.

That could mean the functional end to the consumer watchdog, which has been responsible for returning roughly $11.8 billion to some 29 million consumers since its inception in 2011, according to data from the bureau. That’s an average of $407 returned to each affected consumer, affecting roughly 9% of the U.S. population (assuming no single consumer was a victim in more than one case).

The agency was conceived by a group of consumer advocates including Elizabeth Warren (then a Harvard Law School professor and congressional advisor, and now a senator from Massachusetts), partly in response to reports of deceptive mortgage lending practices that helped precipitate the housing crash. Designed to safeguard consumers in their dealings with the financial-services industry, the CFPB has made moves to curb abuses in the payday, student, and auto lending industries. The agency has also focused on predatory lending practices that target low-income consumers that can ill afford their loans.

But Republican leaders have long tried to check the CFPB, arguing that the agency is flawed, too powerful and not accountable to elected officials. Currently, the bureau is funded by the Federal Reserve, and therefore doesn’t report to elected leaders. Most recently, Senators Ben Sasse (R-NE) and Mike Lee (R-UT) called for replacing the director of the CFPB with a multi-member panel that can be controlled by Congress.

“Director [Richard] Cordray has vigorously supported the unconstitutional independence of the CFPB,” Lee said in an early January statement.”Considering the damage CFPB has done to credit unions and community banks, President Trump should act quickly to remove the director.”

The word on the street is that the Trump administration wants Cordray out—even if the legality of firing the director is still up in the air, Politico reports.

In light of the CFPB’s potential end and the debate over the conflict between business and consumer interests, Fortune looked back at the bureau’s six-year tenure so far, reviewing some of its major actions and priorities.

Phony Accounts

Wells Fargo came out the good child after the financial crisis.

And then it wasn’t.

In September 2016, the CFPB revealed that Wells Fargo employees had opened 2 million phony accounts without consumer permission, leading to unexpected fines and charges showing up on client’s statements totalling $2.6 million, or $25 per person. The general public was outraged, as were government officials, causing then-CEO John Stumpf to resign.

Well Fargo’s $100 million fine to the CFPB was the largest the agency had ever called for. Wells Fargo paid $185 million in total to various government agencies. (The saga continues for Wells Fargos, with other scandals erupting in the wake of the news.)

In a somewhat similar case, the CFPB accused PayPal of signing consumers up for credit lines they had not asked for. PayPal was ordered to pay consumers $15 million, and was fined $10 million.

For-Profit Colleges and Student Loans

Targeting unfair student-loan practices has been high on the bureau’s list of priorities.

In 2014, the bureau sued Corinthian College, alleging that the for-profit chain touted bogus job prospects to lure low-income students into taking out private loans to cover tuition. Those loans often came with higher-than-average interest rates, and the students were more likely to default. When a student defaulted, Corinthian would strong-arm the borrower into making a repayment, using tactics including withholding the student’s diploma. The CFPB called for over $500 million in relief for borrowers.

In September, the CFPB ordered for-profit college chain Bridgepoint Education to refund over $23.5 million, saying the college deceived students into taking loans that were more expensive than advertised.

Credit Cards

In 2014, Bank of America and FIA Card Services allegedly charged 1.9 million consumers for credit monitoring and credit reports, though consumers never received the credit card add-ons. The CFPB ordered Bank of America to pay $727 million in consumer relief.

Payday Lending

The CFPB has dubbed payday lending a “debt trap” for its unusually high interest rates. A typical two-week payday loan may come with an annual percentage rate ranging from 260% to over 780%, according to the CFPB. By comparison, credit card APRs usually range between 12% to 30%. Additionally, payday loans are mostly taken out by those who are least likely to be able to afford the additional interest expense.

In July 2014, the CPFB ordered payday lender ACE Cash Express to refund consumers $5 million for pressuring consumers into a “cycle of debt.” The bureau obtained a copy of the lender’s training manual, showing a physical circle in which consumers who cannot repay their loans to ACE must take out another short-term loan.

The bureau also proposed rules to limit the industry in mid-2016. They included forcing lenders to review whether borrowers have enough income to make the payments and still pay for living expenses. The rules haven’t been enacted, however, and their prospects are uncertain under a Trump administration.

Mortgage Practices

In 2013, the bureau ordered Ocwen, which specializes in subprime or delinquent loans, to relieve homeowners of $2 billion worth of loan obligations. Ocwen was also ordered to refund $125 million to foreclosure victims.

According to the order, Ocwen had driven troubled borrowers toward foreclosure rather than its alternatives, and also forced insurance on homeowners—even if Ocwen knew that the client already had adequate home-insurance coverage.

Discriminatory Lending Practices

In conjunction with the Department of Justice, the bureau has also fined lenders for discriminatory practices.

National City Bank was called to pay $35 million for charging Black and Hispanic borrowers with higher mortgage loan pricers than white borrowers with the a similar credit score between 2003 to 2008.

In 2013, the CPFB and DOJ jointly ordered Ally Bank to pay $80 million in damages to minority borrowers, saying that the bank had charged Black, Hispanic, Asian, and Pacific Islander borrowers higher interest rates. The case affected over 235,000 minority borrowers.

Subscribe to Well Adjusted, our newsletter full of simple strategies to work smarter and live better, from the Fortune Well team. Sign up today.
About the Author
Lucinda Shen
By Lucinda Shen
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

t
Real EstateHousing
Congress just passed the most significant housing bill in decades, so why won’t Trump sign it?
By Alex Veiga and The Associated PressJune 25, 2026
3 hours ago
The bond market knows something about the $39 trillion national debt that Washington doesn’t
EconomyDebt
The bond market knows something about the $39 trillion national debt that Washington doesn’t
By Eva RoytburgJune 25, 2026
3 hours ago
President Donald Trump speaking at a rally in Pennsylvania on June 23, 2026.
Economyoil and gas
Trump turns on Big Oil donors who spent nearly $100 million to get him elected—now he wants the DOJ to investigate them for price gouging
By Tristan BoveJune 25, 2026
4 hours ago
A man pumps his car with gas.
EconomyInflation
U.S. companies swallowed the oil shock. They’re not sure they can do it again
By Sasha RogelbergJune 25, 2026
5 hours ago
Private equity gets cut of two of Taylor Swift’s biggest pop hits through Max Martin’s catalog sale
Arts & Entertainmentprivate equity
Private equity gets cut of two of Taylor Swift’s biggest pop hits through Max Martin’s catalog sale
By Mia OsmonbekovJune 25, 2026
7 hours ago
stock
InvestingMarkets
How one chip stock reversed the global tech selloff, exposed AI’s ‘memory tax’ and made the case for an entire valuation regime change
By Nick LichtenbergJune 25, 2026
8 hours ago

Most Popular

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
17 hours ago
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
Success
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
By Orianna Rosa RoyleJune 24, 2026
2 days ago
Ikea’s billionaire founder was so frugal that he bought clothes from flea markets and took free salt and pepper from restaurants
Success
Ikea’s billionaire founder was so frugal that he bought clothes from flea markets and took free salt and pepper from restaurants
By Orianna Rosa RoyleJune 25, 2026
17 hours ago
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
Asia
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
By Nick LichtenbergJune 24, 2026
1 day ago
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
3 days ago
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
Retail
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
By Nick LichtenbergJune 24, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.