Warren blasts CFPB director Vought for undermining Trump credit card affordability

Senator Elizabeth Warren has accused the acting head of the Consumer Financial Protection Bureau (CFPB), Russell Vought, of undermining President Donald Trump’s efforts to make credit cards more affordable. In a letter obtained exclusively by CNBC, Warren highlighted how the agency has taken steps that contradict Trump’s push for lower credit card costs.

Warren pointed out that the CFPB has dropped a rule limiting credit card late fees, sided with lenders in lawsuits over deceptive practices, and paused enforcement actions against the industry. This comes after Trump called on U.S. banks to voluntarily cap credit card interest rates at 10% for a year, and when they did not comply, he urged lawmakers to pass legislation on the issue.

In her letter to Vought, Warren emphasized the importance of Congress passing legislation to cap credit card rates and criticized the CFPB’s actions under his leadership. She accused the agency of making it easier for big banks and credit card companies to take advantage of consumers, contrary to Trump’s goals of affordability.

The letter from Warren signifies a clash within the Trump administration over financial regulation, as members of the administration have sought to dismantle the CFPB as part of a broader deregulatory agenda. Current and former CFPB employees have raised concerns about the agency’s future under Vought’s leadership, citing efforts to cut funding and enact layoffs.

Warren called on Vought to reinstate a rule capping credit card late fees at $8, which she estimated would save Americans over $10 billion annually. She also urged the agency to address deceptive practices in deferred interest promotions, enforce rules on monitoring interest rate increases, respond to consumer complaints, and crack down on bait-and-switch tactics in rewards programs.

The senator questioned Vought’s commitment to Trump’s affordability initiative, suggesting that his actions may be undermining the president’s directives. Warren emphasized the importance of using the CFPB’s authorities to protect consumers and ensure fair practices in the credit card industry.

The letter from Warren highlights the ongoing debate surrounding financial regulation and consumer protection, as policymakers grapple with how to address rising credit card costs and ensure transparency in the industry. It remains to be seen how Vought and the CFPB will respond to Warren’s calls for action to make credit cards more affordable for Americans.