Days after the rule came into force in January, the office was sued by Netchoice and Technet, two trade groups that represent Big Tech. In addition to challenging the rule, the groups accused the CFPB of the unlawful exceeding of his mandate, claiming that the rule is a “breathtaking statement of his own jurisdiction”.
The indefinite break of the CFPB about writing new rules and regulations can also benefit Elon Musk, whose declared goals include changing X into a so -called “Everything app” that would also make payments. In January, X CEO Linda Yaccarino announced a partnership with Visa to make a digital wallet that can facilitate peer-to-peer payments.
“First of all of many major announcements about X money this year,” she wrote. '[Let’s fucking go.]”
Although Musk has not publicly spoken about these specific ambitions in recent months, he has intiminated that reducing or eliminating the CFPB is a personal goal. He hinted in November, shortly after Clips started to circulate on X from the Podcast episode of Joe Rogan with venture capitalist and co -founder of PayPal Marc Andreessen.
In the show, Andreessen says that the CFPB is functioning to 'terrorize finance' and 'to prevent new competition'. Respond to a clip of this to X, Musk said: “Remove CFPB. There are too many duplicative regulatory authorities. “
Vough's command to Stop all work last week also has an immediate break for various active lawsuits.
On January 14, the CFPB submitted a lawsuit for Capital One Consumers, claiming that the company was deceptively marketed two almost identically appointed savings accounts with enormous different interest rates, which the claims of the agency resulted in the overloading of $ 2 billion at $ 2 billion interest. A day later, the Cash App operator sued $ 175 million, claiming that the company did not sufficiently process a number of complaints from customers about unauthorized payments, and added that this could be cheated by huge amounts of money.
In December it also brought a lawsuit against Walmart and payment processing tool Branch Messenger. The CFPB claimed that drivers had charged $ 10 million in reimbursements when they tried to gain access to their salary. The same month the agency has sued the company that Zelle runs – as well as Banks JPMorgan Chase, Bank of America and Wells Fargo – to be reportedly implementing fraud protection protectors or to investigate fraud complaints from customers.
For now, none of these lawsuits can continue.
According to the former employee, these lawsuits usually investigate the court after one to two years. These studies include the processing of complaints that are sent to the CFPB, interviewing business leaders and obtaining internal documents through civil research, which is comparable to a summons. If successful, the court can order a company to change its practices to comply with the law.
“Bringing these things a conclusion to give consumers recovery and to keep companies responsible with fines of civil money, with sanctions against their managers – all is now just paused,” they say.
When CFPB concludes cases, they can lead to enforcement actions in which companies have to repay their consumers. In these cases, the CFPB is also responsible for following the company and to ensure that they touch their deadlines, so that the pronunciation is effectively maintained.
