WASHINGTON, D.C.—Brady Williams, Legal Counsel, issued the following statement in connection with the CFPB’s decision to rescind dozens of prior agency interpretive rules, policy statements, and advisory opinions:
“Today the CFPB announced its sweeping decision to rescind virtually all of its prior policy guidance—an alarming move that threatens the integrity of consumer oversight, erodes transparency, and signals a dangerous capitulation to industry influence.
“Among the most troubling implications of the Bureau’s action is the likely dismantling of the public-facing Consumer Complaint Database, a vital tool that has empowered millions of Americans to report fraud, abuse, and predatory practices—and allowed researchers, journalists, and watchdogs to hold financial institutions accountable. In fact, consumers have received over $200 million in restitution—or an average payout of $1,470 per person—as a result of the CFPB’s consumer complaint system.
“This is not just bureaucratic housekeeping. This is a calculated demolition of the tools consumers and advocates rely on to protect themselves from financial abuse. Eliminating the public complaint database blindsides the very people the CFPB was created to protect. It sends a chilling message to both consumers and bad actors: your voice doesn’t matter, and there will be no consequences for corporate offenders.
“The rescissions also remove guidance that previously prevented nonbanks and fintech companies from misrepresenting themselves as FDIC-insured depository institutions—a tactic that has historically misled consumers into believing their funds are protected when they are not. Famously, FTX misrepresented that it was FDIC-insured just months before the collapse of its fraudulent trading scheme involving customers’ deposits. Without clear and enforceable guidance, companies may now feel emboldened to blur legal lines and deceive the public. Consumers could soon be depositing their money into risky, uninsured accounts under the false belief that their funds are federally protected. It’s a regulatory sleight of hand that puts working families’ savings and financial stability overall at risk.
“The CFPB is abandoning its mission under the guise of ‘streamlining’ or ‘simplifying,’ but the real outcome is clear: less oversight, more confusion, and a green light for corporate deception. We condemn this latest action and will not stand by while the agency tasked with protecting consumers becomes an accomplice to their exploitation.”
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