Days after the rule entered into force in January, the office was sued by Nethoice and TechnetTwo commercial groups representing Big Tech. In addition to challenging the rule, the groups accused the CFPB of illegally exceeding their mandate, claiming that the rule is an “impressive affirmation of their own jurisdiction.”
The indefinite pause of the CFPB on the writing of new rules and regulations could also benefit Elon Musk, whose declared objectives Include making X a call “application of everything” that would also make payments. In January, the CEO of X, Linda Yaccarino, announced a Association with Visa to create a digital wallet that can facilitate peer payments.
“First of many great ads about X Money this year,” he wrote. “[Let’s fucking go.]”
While Musk has not publicly talked about these specific ambitions in recent months, he has suggested that decreasing or eliminating CFPB is a personal objective. He hinted in November, shortly after the clips began to circulate in X of the Podcast Joe Rogan episode with the risk capitalist and his co -founder partner of PayPal Marc Andreessen.
In the program, Andreessen says that the CFPB works to “terrorize finance” and “avoid new competition.” Responding to a clip of this in x, Musk said“Eliminate CFPB. There are too many duplicate regulatory agencies. “
Voucht’s order to Halt All Work last week also put an immediate pause in several active demands.
January 14, the CFPB Archive demand For Capital One consumers, claiming that the company deceptively marketed two almost identically appointed savings accounts with very different interest rates, that the agency’s claims resulted in that the holders of accounts overload $ 2 billion in interest. A day later, sued the cash application operator For $ 175 million, claiming that the company did not properly prosecute a series of customer complaints about unauthorized payments, adding that this allowed them to be disappointed by large amounts of money.
In December, he also filed a lawsuit Against the branch of the Walmart and Payments Messenger processing tool. The CFPB claimed that drivers were charged $ 10 million in rates when they tried to access their payment checks. The same month, the office demanded The company that runs Zelle—Mon Banks JPMorgan Chase, Bank of America and Wells Fargo, for supposedly not implementing fraud safeguards or investigating customer fraud complaints.
For now, none of these demands can proceed.
According to the former employee, these demands generally go to court after one or two years of investigations. These investigations involve the processing of complaints sent to the CFPB, interviewing corporate executives and obtaining internal documents through civil research demands, which is Similar to a citation. When succeeding, the court can order a company to change its practices to comply with the law.
“Bringing to a conclusion of these things, to give consumers to repair and hold companies with fines for civil money, with sanctions against their executives, all that is now pausing,” they say.
When CFPB cases conclude, they can result in application actions in which companies have to pay their consumers. In these cases, the CFPB is also responsible for following the company and making sure they reach its deadlines, effectively applying the failure.