In February, the new Acting Director of the CFPB, Scott Bessent, reportedly sent an email instructing all CFPB staff to pause immediately new rulemaking, enforcement investigations, public communications, litigation efforts, and other work. The only exceptions were for activities approved by Bessent or required by law.
Monday’s email called for a freeze on CFPB enforcement including ongoing lawsuits. CFPB attorneys can ask the courts to put proceedings on hold, but attorneys cannot make or approve filings or appearances. Staff must neither issue any public communications nor hire new personnel. Final rules that have yet to go into effect were allegedly ordered to suspend their effective dates. As previously covered by InfoBytes, the CFPB’s stoppage will affect indefinitely the effective dates of two final rules: the $5 overdraft fee cap (covered here); and the Bureau’s ban on including medical debt in credit reports (covered here).
