CFPB Dismisses Lawsuits Against Capital One and Berkshire Units: What This Means for Consumers

On Thursday, the Consumer Financial Protection Bureau (CFPB) took a significant step by dropping at least four lawsuits that were initiated by the previous director. This move is part of a larger shift under the new leadership.

The lawsuits involved several major companies, including Capital One, Vanderbilt Mortgage & Finance (owned by Berkshire Hathaway), Rocket Homes Real Estate (a unit of Rocket Companies), and the Pennsylvania Higher Education Assistance Agency.

In the Capital One case, the CFPB stated, “The Plaintiff, the Consumer Financial Protection Bureau, dismisses with prejudice this action against all Defendants.” Similar language was used for the other lawsuits as well.

This change at the CFPB comes after Russell Vought was appointed as acting director. He is working with Elon Musk’s Department of Government Efficiency. Together, they have closed the agency’s Washington headquarters, terminated about 200 employees, and instructed remaining staff to halt most ongoing work.

Interestingly, these filings coincided with a Senate hearing where Jonathan McKernan, President Trump’s nominee for the permanent CFPB director position, was being questioned.

Current and former employees have shared that many legal cases scheduled for court appearances are likely to be dismissed as the agency distances itself from the actions of the previous director, Rohit Chopra. Just last week, the CFPB also withdrew a case against SoLo Funds, a fintech lender accused of overcharging customers.

This situation is evolving, and updates will continue to emerge as the new leadership settles in.

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