Business & Finance

CFPB shifts to nonenforcement approach under Trump administration leadership

A voluntary approach with fintech firm Bilt faced scrutiny after a second service disruption affected cardholders.

Updated Aug 31, 2026 · 11:23 UTC1 reports

The short version

Under acting director Russell Vought, the Consumer Financial Protection Bureau adopted a voluntary, collaborative approach with financial firms instead of using traditional enforcement mechanisms like subpoenas or formal consent decrees.
The policy was highlighted during Congressional testimony using the fintech startup Bilt, which received informal outreach rather than an investigation following credit card transition issues that impacted its users.
Two weeks after the testimony, Bilt cardholders experienced a second outage involving erroneous debt collection notices and reduced credit scores.
The CFPB did not respond to inquiries regarding its handling of consumer complaints or oversight strategy for Bilt.

Russell Vought served as acting director of the CFPB for the first 18 months of the Trump administration, during which he reduced agency staff, attempted to cut funding, and sought to end the lease on its headquarters before federal courts intervened.[ProPublica]
In July testimony before the Senate Committee on Banking, Housing and Urban Affairs, Vought stated the CFPB was shifting away from an adversarial posture to a deregulatory and collaborative approach with financial companies.[ProPublica]
Vought cited credit card startup Bilt as a success for the agency's new approach, stating the CFPB reached out informally and allowed the firm to resolve customer issues without initiating formal enforcement actions.[ProPublica]
Bilt, founded in 2021, reports having 7 million customers and has raised nearly $1 billion in venture funding at a $10.75 billion valuation.[ProPublica]
Two weeks following Vought's congressional testimony, Bilt cardholders received mistaken debt collection notices and saw drops in their credit scores.[ProPublica]
The CFPB did not open a formal investigation, dispatch examiners, or issue a binding consent decree regarding Bilt's initial transition failures, relying instead on data provided directly by the company.[ProPublica]

The long-term regulatory direction of the CFPB remains unconfirmed pending the Senate confirmation of administration nominee Brian Johnson.[ProPublica]