According to court documents filed earlier this month, the U.S. Consumer Financial Protection Bureau (CFPB) has canceled the regulatory oversight provisions of settlement agreements with Apple Inc. (AAPL.US) and Bank of America (BAC.US). These agreements were originally implemented during the Joe Biden administration, and this termination comes several years ahead of the original schedule. This move aligns with the Donald Trump administration's policy direction to "reduce CFPB oversight in the consumer finance sector."
The Trump administration has previously quietly terminated CFPB settlement oversight agreements with Toyota and Bank of America, while also shelving nearly all enforcement actions that were still being pursued when Trump took office.
Regarding the background of Apple's settlement agreement: Last fall, a CFPB investigation found that Apple and Goldman Sachs Group engaged in improper conduct in handling transaction disputes related to the "Apple Credit Card" and misled consumers regarding whether certain transactions were interest-free, allegedly violating consumer protection laws. The original settlement agreement required Apple to undergo enhanced compliance oversight and cooperate with related reviews for five years.
Court documents released on Monday show that Apple has paid in full the $25 million civil penalty required by the October 2024 settlement agreement.
In a separate filing, the CFPB stated that Bank of America has also paid in full a $15 million penalty stemming from charges that the bank illegally prevented unemployed consumers from accessing unemployment benefits during the pandemic. Bank of America's 2023 settlement agreement with the CFPB similarly included requirements for "five years of compliance oversight and cooperation."
The documents also indicate that Bank of America has compensated affected parties and is taking measures to prevent similar violations in the future.
As of now, the CFPB, Apple Inc., and Bank of America have not immediately responded to requests for comment.