CFPB enforcement eases as Trump team tests authority

Trump administration escalates actions weakening CFPB enforcement and staffing

The Trump administration has intensified efforts to weaken the Consumer Financial Protection Bureau’s enforcement and staffing. As reported by the Financial Times, officials argue the bureau has driven up consumer borrowing costs, with Russell Vought criticizing the CFPB as making life less affordable and signaling a desire to shut the agency down entirely.

According to that reporting, the escalation targets the bureau’s ability to supervise markets and bring cases, rather than proposing a formally enacted abolition. The focus on constraining enforcement and shrinking headcount would limit the CFPB’s practical effect even if its statutory mandate remains on the books.

Why this matters for credit cards, mortgages, and student loans

Reduced CFPB supervision and enforcement can change incentives across credit cards, mortgages, student loans, and debt collection by lowering the likelihood of penalties for unlawful fees, servicing errors, or abusive practices. A lighter oversight footprint can also delay remediation when billing disputes or credit reporting inaccuracies arise, particularly for borrowers who depend on fast error correction to avoid cascading fees or credit score damage.

Critics frame the stakes in stark terms. As reported by The Guardian, Senator Elizabeth Warren called the weakening of the CFPB “one of the biggest cons” in modern history and “theft of billions of dollars from American consumers.” The same coverage highlighted warnings that cuts to supervision could expose older Americans, servicemembers, and consumers managing medical or student debt to heightened risks from scams, predatory lending, or aggressive collections.

Immediate consumer impact: complaint processing drop and frozen enforcement

Senate Banking Committee Democrats report that complaint processing has dropped by roughly 80% since changes to the CFPB’s structure, and they say enforcement and supervision have been frozen, leaving many consumers without timely help. If sustained, a prolonged slowdown would likely mean longer response times, fewer active investigations, and reduced deterrence against repeat violations.

At the time of this writing, and based on data from NasdaqGS delayed quotes, Navient Corporation, a large student-loan servicer, last traded after hours at $9.31 on February 13, 2026, down 0.32% for the session and showing declines of about 28% year-to-date and 31% over the past year. Single-stock moves do not establish causation, but the backdrop illustrates how credit-servicing businesses operate amid shifting oversight and litigation risks.

Legal authority over the Consumer Financial Protection Bureau (CFPB)

According to Public Citizen Litigation Group’s Adina Rosenbaum, the administration lacks authority to abolish the CFPB, which was created by Congress, and legal action is being explored to challenge steps that would substantially weaken the agency. Under this view, an administration may reset priorities or reassign staff, but cannot unwind core statutory powers without legislation; any broader attempt would likely face litigation testing separation-of-powers limits.