6 Consumer Protections That May Disappear Under Trump

The Consumer Financial Protection Bureau (CFPB) was created in 2010 to protect Americans from predatory lending, fraud, and unfair financial practices. 

Now, the Trump administration is working to weaken or dismantle the agency via the newly formed Department of Government Efficiency (DOGE), which could lead to fewer consumer protections.

The move comes amid broader deregulation efforts that could remove safeguards against deceptive banking, credit, and auto-lending practices. If the CFPB is shut down, Americans may find it harder to prepare themselves financially, protect their wealth, and withstand economic downturns. Here are some key protections that may disappear under Trump.

The CFPB was founded in 2010 under the passage of the Obama-era Dodd-Frank Wall Street Reform and Consumer Protection Act to prevent a repeat of the 2008 financial crisis. The agency has played a critical role in enforcing rules against predatory mortgage practices, hidden credit card fees, and payday lending traps​.

Now, under Trump's leadership, the CFPB faces an uncertain future. With new leadership committed to deregulation, financial institutions may no longer be held accountable for unfair practices, increasing risks for everyday consumers. The CFPB's weakening or elimination could leave Americans with fewer resources to challenge fraudulent lenders and deceptive financial products​.

One of the most immediate impacts of Trump's regulatory rollback is the removal of protections against predatory car dealership practices. Under Biden, the Federal Trade Commission (FTC) introduced new rules to prevent auto dealers from tricking buyers with hidden fees, inflated loan costs, and misleading sales tactics.

However, a federal court recently overturned these protections. Now, car buyers may struggle to get transparent pricing, fair financing, or protection from fraudulent add-ons. Experts warn that Americans should watch out for delivery scams, excessive fees, and inflated interest rates when purchasing a vehicle.

Under the CFPB's previous leadership, the organization advocated for consumers to get their money back when things went wrong, like when they are charged unnecessary fees or absurd interest rates.

However, the Trump administration's effort to eliminate these consumer protections may enable lenders to charge even higher interest rates. If these changes go through, Americans who are struggling financially may end up being unable to escape debt.

Banks and credit card companies have long relied on overdraft fees and late-payment penalties as a source of revenue. The CFPB had previously limited these fees by requiring financial institutions to be more transparent about their pricing and fee structures, saving Americans money.

The Trump administration's deregulation efforts may reintroduce higher overdraft penalties and credit card late fees, costing consumers more. Americans may face unexpected charges simply for missing a payment deadline by a few days.

One of the CFPB's major roles has been regulating mortgage lending to prevent predatory practices. The agency cracked down on deceptive mortgage terms, hidden fees, and risky lending that contributed to the 2008 housing crash. By enforcing strict rules, the CFPB helped stabilize the housing market and ensure fair lending practices.

Now, Trump's deregulation efforts may remove key regulations, potentially allowing lenders to offer high-risk loans without clear disclosures. This could put homebuyers at risk of hidden fees, balloon payments, and foreclosure traps. 

If these protections disappear, buying a home could become riskier, especially for first-time buyers and lower-income Americans.

Under the Fair Debt Collection Practices Act (FDCPA), the CFPB introduced a rule to limit harassment from debt collectors, including restrictions on how often collectors can call consumers and what tactics they can use. 

These protections helped prevent intimidation and abuse, ensuring that debt collection remained fair and legal.

If Trump's administration eliminates these safeguards, debt collectors may reverse these practices, including excessive phone calls, misleading threats, and pressure tactics to force repayment. Without strong regulations, borrowers may have fewer rights when disputing debt collection claims.

In the wake of scandals like Wells Fargo's fake accounts scheme, the CFPB introduced stronger regulations to prevent banks from opening unauthorized accounts in customers' names. These rules required financial institutions to obtain explicit customer consent before opening new accounts or issuing credit products.

Under Trump's administration, these safeguards may be rolled back, making it easier for banks to engage in deceptive practices. Without strict oversight, consumers could face unexpected fees, damaged credit scores, or unauthorized accounts being opened in their name — with potentially fewer avenues for recourse.

With the dismantling of consumer protections under Trump, Americans may face higher fees, riskier loans, and more deceptive financial practices. The rollback of CFPB regulations may benefit big banks and lenders while leaving everyday consumers more vulnerable to scams and financial pitfalls.

One critical question remains: Without these safeguards, how can consumers protect themselves from unfair financial practices? As these changes unfold, it may be more important than ever to stay informed, read financial agreements carefully, and look for ways to earn extra income to make ends meet.