The Consumer Financial Protection Bureau (CFPB) has unexpectedly dropped cases against several companies previously accused of harming consumers, including Capital One, Rocket Homes, and a student loan servicer. This decision reflects a hands-off regulatory approach under the Trump administration, particularly influenced by Elon Musk’s Department of Government Efficiency (DOGE). The CFPB’s move to dismiss these lawsuits, including one accusing Capital One of cheating customers out of interest payments, highlights a shift in regulatory priorities. Critics argue this allows corporations to escape accountability. The decision coincides with the confirmation hearing of Jonathan McKernan, President Trump’s nominee to lead the CFPB, who faced questions about the agency’s current direction. Capital One and Rocket Companies welcomed the dismissal, while shares of both companies rose despite a slight dip in the S&P 500. The CFPB also dropped a case against the Pennsylvania Higher Education Assistance Agency, accused of mishandling student loans discharged in bankruptcy. — news from CNN
