US consumer watchdog drops case against Capital One over cheating customers

Core Points - The US Consumer Financial Protection Bureau (CFPB) has dropped a legal action against Capital One, which was accused of cheating consumers out of over $2 billion in interest payments on savings accounts [1] - This dismissal reflects a broader trend of reduced enforcement actions by the CFPB under the Trump administration, including the dismissal of lawsuits against other financial entities [2] - The Trump administration aims to streamline the CFPB, which Democrats argue will be insufficient to meet the agency's legal obligations [4] Group 1 - The CFPB's dismissal of the lawsuit against Capital One indicates a significant shift in regulatory enforcement under the Trump administration [1] - The agency also dismissed a lawsuit against the Pennsylvania Higher Education Assistance Agency (PHEAA) and a case against Solo Funds, highlighting a pattern of reduced enforcement actions [2] - Trump's administration has taken steps to dismantle the CFPB, including staff layoffs and office closures, which have faced legal challenges from employee unions and consumer advocates [3] Group 2 - Jonathan McKernan, Trump's nominee to head the CFPB, criticized past enforcement actions as excessive but committed to upholding the agency's legal mandates if confirmed [4] - The administration's approach suggests a focus on creating a more efficient CFPB, although this has raised concerns among Democrats regarding the agency's ability to fulfill its responsibilities [4]