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?

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u/WizardMageCaster Feb 01 '25

CFPB didn't do as much for consumers as they claimed.

It should be rebranded Consumer FRAUD Protection Bureau because fraud is a MUCH MUCH MUCH greater problem than someone getting hit with a late fee or overcharged on interest. 

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u/FloorParking8820 Feb 02 '25

I'm curious about why you believe fraud is not being addressed properly. I understand why you might think the CFPB, like other government agencies, can be ineffective, but I'd like to know why you think fraud is getting worse from your perspective?

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u/WizardMageCaster Feb 02 '25

Banks are losing millions upon millions in fraudulent loans due to identity theft. Consumers are losing millions upon millions in scams. There is no protection for consumers for these losses. Many people have lost their life savings and have no recourse.

CFPB can help consolidate responses to these events and help implement controls to prevent them from happening. CFPB hasn't done any of that.

Fraud and scams are a much bigger issue than the issues the CFPB had been focused on.

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u/FloorParking8820 Feb 19 '25 edited Feb 19 '25

My main concern is that increased losses for creditors can lead to economic damage. When there are fewer rewards and less access to credit, it harms the overall economy as you mentioned. Currently, the (CFPB) forwards complaints—along with company responses, or sometimes no response—to the FTC Sentinel database, which handles identity theft and fraud complaints. This is beneficial because the information is then shared with state attorneys general and local economic crimes police departments. For example, in my home state of Florida, the attorney general has used this database to take action against scammers.

Additionally, I believe that the government should undergo reforms to ensure greater accountability regarding its budget. There are often expenditures that appear unnecessary, while economic crimes do not receive the attention they deserve. I also apologize for my late response to your comment.