The CFPB says it will 'deprioritize' protecting student borrowers, people with medical debt
Source: Yahoo! Finance
The CFPB says it will 'deprioritize' protecting student borrowers, people with medical debt
A new memo says the agency will return to its original purpose of overseeing big banks.
Jordan Weissmann
Updated Sat, April 19, 2025 at 12:55 PM EDT·4 min read
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. ...
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Read more: https://www.yahoo.com/news/finance/news/the-cfpb-says-it-will-deprioritize-protecting-student-borrowers-people-with-medical-debt-151021551.html
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