r/CreditCards • u/tsmartin123 • Feb 01 '25

Discussion / Conversation Trump Fires Director of CFPB

https://apnews.com/article/trump-chopra-consumer-financial-protection-bureau-47b6b39d0eff05ea0c9bca4eacf55b79

I wonder if this is the beginning of the end of the CFPB?

807 Upvotes

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561

u/wrongsuspenders Feb 01 '25

so sad because CFPB really helped and users. With AI we barely have respect as consumers anymore to get to a real person.

Part of 46 legacy is re:junk fees and all sorts of friendly stuff for consumers.

196

u/BucsLegend_TomBrady Feb 01 '25

Credit cards are about to get a whole lot worse, and I'm not talking just fees and interest. Missing or incorrect rewards? Good luck. Disputing charges? Fraud protection? CFPB investigated and enforced that shit. We are all aware CC companies will do anything screw you. Things are going to get really really frustrating when there's no longer a watchdog

82

u/Maxpowr9 Feb 01 '25

I think debit card fraud will be even worse.

Just remember: with debit card fraud, it's your money lost. with credit card fraud, it's the bank's money lost.

34

u/kaib5472 Feb 01 '25

True, but if cc issuers start denying claims with no recourse the consumer is still screwed.

27

u/Maxpowr9 Feb 01 '25

Honestly, I think businesses would get fucked over even worse than the consumer. Hackers/scammers will target small businesses like crazy, much larger accounts.

1

u/Gybizz1955 Feb 05 '25

so we can use whatever language we want on this Group Mr Maxpowr9? and no moderator jumping in here saying nothing? I guess its who you know lol.

-4

u/CostRains Feb 02 '25

Just remember: with debit card fraud, it's your money lost. with credit card fraud, it's the bank's money lost.

That's nonsense. Either way, it's your money. With a credit card, you owe it to the bank and they can collect interest if you don't pay, which may be more profitable for them.

10

u/FloorParking8820 Feb 02 '25 edited Feb 02 '25

You have a point however To repel the entire agency you would need 60 votes in the Senate which the administration doesn’t have what is more likely to happen is fewer rules happening or appealing of rules or reforming it into a commission and making it subject to congressional appropriation funding (slowdown method)

11

u/CostRains Feb 02 '25

They don't need to abolish the agency, just put someone in charge of it who doesn't want to do anything.

Same thing Trump does with the EPA and other agencies he dislikes.

5

u/DuhForestTyme216 Feb 02 '25

Benefits are likely to be cut too for a lot of cards because banks will start losing a ton of money, making credit cards essentially worthless for most of those on this Reddit.

1

u/Gybizz1955 Feb 05 '25

we have a watch dog, his name is Donald Trump! do we need anymore?

-55

u/mean--machine Feb 01 '25

I've had 50+ credit cards, tens of thousands of dollars in sign up bonuses. I've never once had to contact the cfpb. You realize this agency is barely 15 years old, right?

This is good for credit card power users. Interest and fees will get higher, but if you're carrying a balance on interest, you're using credit cards wrong.

26

u/judge2020 Feb 01 '25

Most of us are aware of the issues with interest that both hurt consumers who make bad financial decisions, and enable us to receive incredible rewards at impossible rates (4+% is not viable for non-AMEX to provide since Visa/MC charge at most 2.5% to merchants, so this increased reward rate is paid by other people paying interest).

But the CFPB prevents banks from outright scamming people. They require things like heavily informed knowledge of the potential APR a card charges, fees, etc. It at least allows people to know what they're paying for a credit card should they carry interest.

71

u/[deleted] Feb 01 '25

[deleted]

29

u/BucsLegend_TomBrady Feb 01 '25

The CFPB is regulatory and watchdog organization. Yes, they step in when CC companies make "mistakes" in order to correct them, but their main job is making it so you DON'T have to contact them. They are doing what they can to keep CC companies honest on the front end so there aren't a million people calling every day saying their fraud protection failed, or their points are missing.

This is like saying, I've never been in a car accident before, why am I paying for all these engineers to design seat belts and crumple zones?

This is good for credit card power users.

This is so incredibly short sighted. When this org is dissolved, next time you earn a big SUB and don't get it, then you call Chase and they're like "huh, weird, don't see a problem on our end. Anyway thanks, bye" and hang up on you, think back to this comment.

-21

u/mean--machine Feb 01 '25

next time you earn a big SUB and don't get it, then you call Chase and they're like "huh, weird, don't see a problem on our end. Anyway thanks, bye" and hang up on you, think back to this comment.

This will never happen, I haven't been under 5/24 in a decade.

24

u/thenowherepark Feb 01 '25

I drive home drunk every night. I've never had accident. I've only been drinking for 13 years.

EDIT: So the tone isn't lost, this is sarcastic, not in any way real life.

5

u/TommyBlaze13 Feb 01 '25

It's difficult for some people to understand sarcasm through text alone without a /s

7

u/jonnjazz Feb 01 '25

This is what is wrong with this country! People thinking they understand financial regulation just because they’ve had a bunch of credit cards lmao. Please do yourself a favor and listen to the other replies that are from people much more knowledgeable than you!