Cfpb Drops Enforcement Action Against Transunion
The US Consumer Financial Protection Bureau on Friday dropped an enforcement action against consumer credit bureau TransUnion, adding to the embattled agency's mass dismissal of cases against financial companies accused of cheating consumers. The CFPB had brought the case in 2022, accusing the company and longtime executive John Danaher of violating a 2017 order against deceptive marketing practices. However, Russell Vought, the agency's acting director, decided to continue a 2022 case against fintech lender MoneyLion.
- This unprecedented move by the CFPB could be seen as a sign of its struggle to maintain independence and credibility in the face of political pressure, potentially setting a precedent for future regulatory actions.
- Will the mass dismissal of cases against financial companies signal a broader shift towards leniency in enforcement actions, or is this simply a temporary measure aimed at restoring the agency's morale?