Sen. Elizabeth Warren released a report Thursday asserting that the Trump administration’s restructuring of the Consumer Financial Protection Bureau has imposed costs on Americans totaling up to $26.5 billion. The Massachusetts Democrat attributed the majority of these costs to regulatory changes implemented by acting Director Russell Vought, particularly decisions to eliminate restrictions on credit card and overdraft fees.
According to Warren’s analysis, approximately $15 billion of the total stems from the CFPB’s decision to rescind a rule that had capped most credit card late fees at $8. The agency had previously projected this regulation would generate roughly $10 billion in annual savings for consumers. An additional $7.5 billion was attributed to the elimination of an overdraft fee rule that would have restricted many banks to charging $5 for overdraft incidents. The remaining $4 billion in estimated costs derived from the agency’s discontinuation of more than three dozen enforcement actions and settlements that were intended to provide direct reimbursement to consumers.
The report emerged as Vought appeared before a Senate oversight hearing Thursday to address his tenure at the agency. The hearing also examined other controversial actions, including the dismissal of enforcement cases and consent orders, as well as allegations that the CFPB recently removed 15 years of consumer data from its website.
Since the Trump administration took office last year, the CFPB has experienced significant staff reductions, narrowed or abandoned dozens of enforcement cases, and reversed multiple regulations established during the Biden administration. Administration officials characterized these modifications as necessary to refocus the agency on what they view as its core responsibilities. Republicans have defended the changes as appropriate constraints on regulatory overreach, while Democrats, particularly Warren who helped establish the agency following the 2008 financial crisis, contend the administration has substantially weakened consumer financial protections.
The dispute coincides with Senate consideration of Brian Johnson’s nomination to serve as permanent CFPB director. Johnson, formerly a deputy director at the CFPB and currently an executive at Capital One, was selected by President Donald Trump for the role. Warren also submitted a letter to Vought Thursday documenting what she characterized as unresponded congressional oversight requests during his leadership of the bureau.
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