CFPB Abruptly Drops Enforcement Actions Against Corporations Accused of Ripping Off Consumers

February 27, 2025 — Press Release

Cases Dropped Against Mobile Home Lender, Rocket Homes, Student Loan Servicer, and More Let Corporate Wrongdoers Off Scot-Free

WASHINGTON – Consumer advocates raised alarm today as the Consumer Financial Protection Bureau (CFPB) abandoned enforcement cases against corporations suspected of causing significant harm to consumers. 

“The Trump Administration and Elon Musk are showing us exactly what it means not to have ordinary people protected by a strong Consumer Financial Protection Bureau –  they are dismissing enforcement cases that sought to return billions to working families harmed by corporations accused of egregious conduct that violated the law,” said Lauren Saunders, associate director of the National Consumer Law Center. “On top of the stop work order and firing of CFPB workers doing their jobs, this sends a dangerous message to corporate America that financial fraud and abuse will go unchecked. We must preserve a strong, independent, and functional CFPB to stand up to corporate bullies.” 

The CFPB today filed requests in court to dismiss, and to forever bar the CFPB from pursuing, cases it had filed in the previous administration against: 

• Rocket Homes. The CFPB filed suit against Rocket Homes to stop it from providing kickbacks to real estate brokers and agents in exchange for steering homebuyers to Rocket Mortgage for loans.
• Vanderbilt Mortgage and Finance. The CFPB sued Berkshire Hathaway’s Vanderbilt Mortgage & Finance, the biggest lender for people buying mobile homes, for setting families up to fail when they borrowed money to buy a manufactured home by ignoring obvious red flags that the borrowers could not afford the loans. Vanderbilt charged many borrowers additional fees and penalties when their loans became delinquent, and some eventually lost their homes. 
• Capital One. The CFPB brought this suit for allegedly cheating millions of consumers out of more than $2 billion in interest rates on savings accounts by obscuring its higher-interest savings accounts.
• Pennsylvania Higher Education Assistance Agency (PHEAA). The CFPB sued the student loan servicer PHEAA for illegally collecting on private student loans that had been discharged in bankruptcy and sending false information about consumers to credit reporting companies. 
• CURO’s Heights Finance. The CFPB had sued CURO group, the installment lending conglomerate that owns Heights Holding Finance, for illegally churning loans to harvest hundreds of millions in loan costs and fees. The CFPB alleged that Heights refinanced unaffordable loans to churn delinquent borrowers into continuous fee-laden debt. 

“Voters in the last election expressed their dismay with high prices, yet the Administration is stopping the essential work to stop corporate abuses that take billions from people every year. The cases dismissed today actually underscore why the CFPB’s work is so essential to investigate practices that are draining hard-earned money from the pockets of everyday people,” said Saunders. “We urge the Administration to let the CFPB get back to the role Congress created for it – to stand up vigorously for consumers.” 

Related Resources

• Press Release: CFPB Drops Lawsuit Against Illegal Tip-Based Payday Lender, Feb. 24, 2025
• Press Release: Unlawful Shut Down of Consumer Agency Endangers Working Families, Honest Businesses, the Economy, Feb. 10, 2025