Change is the new normal for the Consumer Financial Protection Bureau (CFPB). The CFPB changes include a new acting director being named and a nomination being made for permanent director, a preliminary injunction being made in one court case, and a motion to stay was granted in another case.
1st CFPB Change: New Acting Director, Nomination Named
Arguably the most notable CFPB change happened in late January 2025, when President Trump fired CFPB Director Rohit Chopra and named Secretary of the Treasury Scott Bessent Acting Director of the CFPB as we had previously reported. He ordered the CFPB staff to halt several activities. On Friday, February 7, 2025, President Trump named the newly confirmed director of the Office of Management and Budget, Russell Vought, as acting director of the CFPB.
Vought quickly expanded the order of the previous acting director to include all work at the CFPB. The Trump Administration also canceled the CFPB’s next funding draw from the Federal Reserve. According to news sources, the CFPB headquarters in Washington, D.C. has been closed since Monday, February 10, 2025. On Thursday, February 11, 2025, President Trump nominated Jonathan McKernan to serve as the director of the CFPB. McKernan recently stepped down from his position on the FDIC Board, having previously served in the Treasury Department the Federal Housing Finance Agency and the U.S. Senate Banking Committee.
2nd CFPB Change: Preliminary Injunction Granted
The next CFPB change is that in early February 2025, the U.S. District Court for the Eastern District of Texas granted a preliminary injunction in favor of the Consumer Data Industry Association (CDIA) and Cornerstone Credit Union League in their case against the CFPB. This injunction delays the CFPB medical debt credit reporting rule until June 15, 2025.
The court announced this decision after CFPB Acting Director and current Treasury Secretary Scott Bessent already ordered the suspension of all final rules that hadn’t yet taken effect. The court also ordered that:
- All deadlines scheduled for this matter are stayed until May 7, 2025.
- The hearing and oral argument on the plantiffs’ motion for a preliminary injunction is May 12, 2025.
- The effective date of the Final Rule is stayed until June 15, 2025.
When the CDIA and Cornerstone Credit Union League filed their lawsuit in January 2025, it stated that, “It is black letter law that an agency cannot prohibit through regulations what Congress has expressly permitted by statute. Because the [f]inal [r]ule contravenes the statute, it should be vacated.”
3rd CFPB Change: Motion to Stay Granted
The final CFPB change for this article is that in the ACA International and co-plaintiff Specialized Collection Systems Inc. lawsuit, which was filed in early January in the U.S. District Court for the Southern District of Texas, Houston Division, has granted a motion to stay proceedings. The stay delays proceedings by 90 days and requires the CFPB to submit a report on March 14, 2025, and every 30 days after, stating their position on the enforceability of the rule.
The CFPB changes come with many challenges, and Americollect is working to keep you informed as various groups work to protect your right to collect the revenue you have earned.
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