As President Trump’s administration has been rolling back consumer protections that focus on financial institutions and bank regulations, the administration’s common refrain is they’re making access to business capital easier. But with deregulation comes sacrifices and consumers are the ones suffering. So much attention has been focused on the Consumer Financial Protection Bureau, however, many Americans don’t realize how far reaching many of the rollbacks reach into day to day life.
Trump’s changes to the CFPB is under fire after Mick Mulvaney took over the helm as a temporary replacement until Trump appoints a permanent replacement for Director Richard Cordray or a bipartisan commission voted on by Congress replaces him.
The CFPB is emblematic of the changes the Trump administration has brought to Washington. Originally created in 2010 during the wake of the financial lending crisis that lead to the Recession, the CFPB was intended to police predatory lending practices and bring regulation and oversight to the financial sector. Americans strongly agree, with 80% in favor, that the CFPB is necessary.
However, Mulvaney has decided not to pursue lawsuits against alleged predatory lenders—opting instead for inaction. Instead of fulfilling the promise of the CFPB, Mulvaney’s decision for inaction essentially nullifies the Bureau’s existence.
Trump’s rollback of consumer regulations goes much further than just the Consumer Financial Protection Bureau. In fact, according to the Washington Post, “The new direction affects agencies that touch nearly every aspect of consumer life, advocates say — from how Americans access credit and car loans to the safety of cribs and cellphones.”
In a similar vein, Trump has eliminated 22 regulations for each new regulation he’s added since taking office. While some say this has stimulated the economy, this comes at a cost to the average consumer who has been systematically hurt by the Trump administration’s deregulation. There have been so many deregulations that Brookings has created a tool for consumers to track deregulation in the Trump era.
The list of regulations Trump has eliminated span far-reaching effects on the lives of average consumers, ranging from paying 950% interest on some car loans to life-threatening beryllium exposure. Consumers are being put further and further at risk as the Trump administration rolls back regulations—some of which have been on the books for decades.
Consumers are are greater risk due to deregulation and have little recourse than to vote for pro-consumer candidates in this year’s upcoming election.