U.S. Senator Elizabeth Warren (D-MA) has expressed concerns over the current direction of the Consumer Financial Protection Bureau (CFPB) under acting Director Russell Vought. In an exclusive letter obtained by CNBC, Warren accused Vought of undermining President Trump's efforts to reduce credit card costs for Americans.
Warren's letter highlighted the CFPB’s recent decisions, including the reversal of a rule that limited credit card late fees, support for lenders in lawsuits concerning deceptive practices, and the suspension of enforcement against industry malpractices.
Earlier this month, President Trump urged U.S. banks via social media to voluntarily cap credit card interest rates at 10% for a year. After banks failed to comply, Trump prompted lawmakers to introduce legislation on the matter.
Warren wrote to Vought, “I spoke with President Trump last week and told him that Congress could pass legislation to cap credit card rates if he would fight for it.” She criticized Vought for actions that seemingly contradict the President’s goals, saying his leadership made it easier for financial institutions to exploit consumers. She emphasized the need for the CFPB to actively address excessive credit card costs and enforce rules against unfair financial practices.
Warren urged Vought to reinstate the rule capping credit card late fees at $8 to save Americans over $10 billion annually. She also called for increased scrutiny over deceptive industry promotions, monitoring interest rate hikes, addressing consumer complaints, and stopping exploitative rewards programs.
Warren concluded, “Either President Trump is not serious about making credit cards more affordable, or you are insubordinately disregarding his direction,” intensifying the ongoing tension surrounding the CFPB, a regulatory body Warren helped establish during the Obama administration.