The U.S. Consumer Financial Protection Bureau terminates oversight of Apple and Bank of America several years early
The Consumer Financial Protection Bureau (CFPB) has terminated its regulatory agreements with Apple and Bank of America several years ahead of schedule. This move is consistent with the policies of the Trump administration, which had previously terminated regulatory agreements with other companies. Apple reached a settlement agreement due to misconduct in credit card transactions with Goldman Sachs, requiring it to undergo five years of oversight and has paid a fine of $25 million; Bank of America paid a fine of $15 million for preventing unemployed consumers from accessing relief funds
According to court documents submitted earlier this month, the Consumer Financial Protection Bureau (CFPB) has canceled the regulatory terms of the settlement agreements with Apple Inc. (AAPL.US) and Bank of America (BAC.US) — these agreements initially took effect during the Joe Biden administration, and this regulatory termination has occurred several years earlier than originally planned.
This move aligns with the Donald Trump administration's policy direction of "reducing CFPB oversight in the consumer finance sector." It is reported that the Trump administration had previously quietly terminated the CFPB's regulatory oversight of settlement agreements with Toyota and Bank of America, while also suspending nearly all enforcement actions that were still being pursued during Trump's tenure.
Looking back at the background of Apple's settlement agreement: Last fall, the CFPB's investigation found that Apple and Goldman Sachs had engaged in improper conduct in handling disputes related to the "Apple Credit Card," misleading consumers on whether certain transactions were interest-free, and allegedly violating consumer protection laws. The initial settlement agreement required Apple to undergo enhanced compliance oversight and cooperate with related reviews for five years.
The court documents released on Monday indicate that Apple has fully paid the $25 million civil penalty required by the settlement agreement by October 2024.
In a separate document submitted, the CFPB stated that Bank of America has also fully paid a $15 million penalty — this penalty stems from allegations that Bank of America illegally prevented unemployed consumers from accessing unemployment benefits during the pandemic. The original settlement agreement reached between Bank of America and the CFPB in 2023 also included requirements for "five years of compliance oversight and cooperation."
The documents also noted that Bank of America has compensated affected individuals and is taking measures to prevent similar violations in the future.
As of now, neither the CFPB, Apple Inc., nor Bank of America has immediately responded to requests for comment from reporters
