CFPB withdraws Toyota and Walmart cases

These initiatives fall in line with President Donald Trump’s efforts to minimise CFPB authority, as, since taking office, his administration has focused on taking down most enforcement actions from the previous leadership. This reflects Trump’s view of the agency and its role in financial oversight.

Toyota and Walmart’s reported wrongdoings

Originally, the CFPB alleged that Toyota’s financing arm directed consumers to pay for costly add-on products. According to the 2023 findings, the company’s dealers reportedly misled buyers into thinking that additional products, such as damage or theft protection, were required. Also, the CFPB mentioned that Toyota made cancellations difficult, routing over 118,000 customers to a hotline that suppressed refunds.

When it comes to Walmart and Branch, the agency filed a lawsuit over claims that over a million delivery drivers were pushed to leverage fee-heavy payment accounts, leading to over USD 10 million in junk fees.

Now, Walmart expressed satisfaction with the CFPB’s decision, underlining that the case presented flaws and was rushed. At the same time, Toyota received the outcome with contentment, mentioning its commitment to optimising the customer experience. The agency’s order did not provide any explanation for reversing the settlement, which was set to last for five years since its implementation.

Asked to comment on the matter, neither the CFPB nor Branch responded to requests. Additionally, the White House also did not provide any opinion on the moves.

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