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CFPB ends Apple and U.S. Bank settlements early under Trump administration shift

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The Consumer Financial Protection Bureau (CFPB) has ended oversight agreements with Apple and U.S. Bank years ahead of schedule, according to recent court filings. The move is part of President Donald Trump’s broader effort to reduce CFPB enforcement and roll back settlements imposed during the Biden administration.

Apple’s settlement stemmed from a 2024 CFPB action that found the company and Goldman Sachs violated consumer protection laws by mishandling disputes on the Apple Credit Card and misleading customers about interest-free transactions. The original agreement required five years of enhanced compliance, but has now been cut short. Apple paid a $25 million civil penalty, fulfilling its financial obligation.

U.S. Bank, meanwhile, faced a 2023 settlement over allegations it illegally blocked unemployed consumers from accessing pandemic-era benefits. The deal also required five years of compliance monitoring. The bank has since paid a $15 million penalty, made restitution payments, and pledged corrective measures, leading regulators to end oversight.

The filings also reveal the CFPB under Trump has dropped oversight for other firms, including Toyota and Bank of America, while halting nearly all enforcement actions still pending when Trump took office.

Critics say the changes mark a significant retreat from the agency’s consumer protection role, while supporters argue that excessive monitoring placed unnecessary burdens on businesses.

CFPB Ends Supervision of Google Payment, Prompting Google to Drop Lawsuit

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The U.S. Consumer Financial Protection Bureau (CFPB) has officially withdrawn its supervisory designation over Google Payment Corp, reversing a Biden-era initiative aimed at extending oversight to nonbank financial services provided by Big Tech companies.

The decision, first reported by Bloomberg News and confirmed by a Google spokesperson, ends months of legal conflict between the regulator and Alphabet’s financial unit. In response, Google will drop its lawsuit against the CFPB.

The CFPB initially announced in December 2024 that it would begin supervising Google Payment, claiming that the company’s financial services posed risks to consumers. Google promptly challenged the move in court, arguing that the claims were based on a discontinued peer-to-peer (P2P) payment product and a small number of unsubstantiated complaints.

Russell Vought, acting director of the CFPB under the Trump administration, defended the reversal in a May 7 memo, calling the supervision “an unwarranted use of the Bureau’s powers and resources.”

Google spokesperson José Castañeda welcomed the decision, stating:

“It didn’t make sense for the CFPB to supervise a product that never posed any risks and is no longer available in the U.S. We appreciate their common-sense decision to drop this issue.”

Google discontinued its U.S. version of the Google Pay P2P service in June 2024, citing business reasons, well before the CFPB’s supervisory action was announced.

Under the Biden administration, the CFPB had expanded its focus to include tech-driven financial platforms, citing the growing role of companies like Apple, Google, and PayPal in managing consumer transactions outside traditional banking.

The end of the supervision marks a significant policy shift under the Trump administration, reflecting a broader rollback of regulatory scrutiny over nonbank fintech services.

US CFPB Fines Cash App-Parent Block Over Insufficient Fraud Protection

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The U.S. Consumer Financial Protection Bureau (CFPB) has imposed a penalty on Block, the parent company of the popular mobile payment service Cash App, over allegations of inadequate fraud protection measures. According to the CFPB, Block directed Cash App users who experienced fraud-related losses to contact their banks for transaction reversals, but these claims were subsequently denied. The regulator further accused Block of using various tactics to prevent users from seeking help, ultimately reducing the company’s own costs.

Cash App, one of the largest peer-to-peer payment platforms in the U.S., allows users to send and receive money, accept direct deposits, and make purchases using a prepaid card. CFPB Director Rohit Chopra criticized Cash App for failing to fulfill its responsibilities, burdening local banks with problems caused by the company’s actions.

Block, led by Twitter co-founder Jack Dorsey, responded by stating that the issues cited were historical and no longer reflect the current Cash App experience. The company emphasized that it disagreed with the CFPB’s characterizations but chose to settle the matter to move forward and prioritize its customers and business.

The enforcement order includes a $55 million penalty to be paid into the CFPB’s victim relief fund, along with up to $120 million in compensation. Block has also been required to establish a 24-hour live customer service for investigating unauthorized transactions and issuing refunds.

Additionally, the company agreed to pay $80 million to settle with 48 state financial regulators. This penalty comes amid other actions taken by the CFPB against financial services, including a lawsuit against Zelle and major banks last month.