On February 26, Rep. Maxine Waters (D-CA), Ranking Member of the House Financial Services Committee, sent a letter addressed to the presidents and chief executive officers of two financial industry trade organizations. The letter stated there is a gap in consumer protection oversight following the Trump administration’s actions to halt the operations of the CFPB, creating a regulatory gap that affects the largest banks in the country.
Waters requested information from the trade organizations regarding how their member banks were ensuring compliance with these laws in the absence of federal oversight. The letter outlined specific inquiries, including how member banks were handling consumer compliance, any changes in staffing or job duties related to compliance, and how consumer complaints are being documented and resolved. Additionally, the letter sought information on pending litigation involving member banks and the CFPB, and whether any efforts are being made to dismiss such cases. Concerns were raised about the potential sharing of sensitive data with external entities, such as companies expanding into payment services. Waters requested a response by March 7.
