Warren Accuses CFPB Chief of Defying Trump on Credit Cards

Senator Elizabeth Warren (left) and acting CFPB Director Russell Vought (right). Warren alleges Vought's actions contradict the President's public stance on credit card fees.

Senator Elizabeth Warren has accused the acting head of the Consumer Financial Protection Bureau (CFPB) of directly undermining President Donald Trump's stated goal to make credit cards more affordable for Americans.

In a letter sent Friday to Acting CFPB Director Russell Vought, the Massachusetts Democrat argued that the agency’s recent actions serve the interests of large banks rather than consumers, creating a direct conflict with the President’s agenda.

The criticism highlights a growing tension between the White House’s public messaging on consumer finance and the deregulatory actions of its own administration.

A Clash Over Consumer Protection and Presidential Goals

The conflict began after President Trump recently called on U.S. banks via social media to voluntarily cap credit card interest rates at 10% for one year. When banks did not comply, he urged Congress to pass legislation to enforce the cap.

Warren claims she spoke with the president last week, telling him Congress could pass a rate cap bill if he would support it. However, she asserts that Vought's leadership at the CFPB is actively working against this objective.

"While Congress considers legislation to address the issue, your own actions are directly undermining the President's stated goals," Warren wrote. "Under your leadership, the CPFB has taken steps to make it easier—not harder—for big banks and credit card companies to rip off Americans."

Over the past year, the agency has dropped a rule designed to limit credit card late fees, sided with lenders in lawsuits over deceptive practices, and paused enforcement actions against the industry.

Warren's Demands for a CFPB Policy Reversal

Warren, who played a key role in creating the CFPB under the Obama administration, is now leveraging the President’s initiative to challenge his administration’s moves to weaken the agency. Members of the Trump administration have previously sought to close the CFPB as part of a broader pro-business agenda.

In her letter, Warren outlined several specific actions she expects Vought to take immediately to align with the President's stated priorities:

• Reinstate the Late Fee Cap: Immediately bring back the rule capping credit card late fees at $8, a move she claims would save Americans over $10 billion annually.

• Combat Deceptive Practices: Crack down on misleading deferred interest promotions used by credit card companies.

• Resume Enforcement: Restart the enforcement of rules that monitor interest rate increases.

• Address Consumer Complaints: Respond to the growing backlog of consumer complaints filed with the agency.

• Stop "Bait-and-Switch" Tactics: Halt deceptive practices related to credit card rewards programs.

Agency's Future Hangs in the Balance

According to current and former employees, the CFPB is on "life support" under Vought, who has reportedly fought in court to enact mass layoffs and cut off the agency's funding.

Warren argued that Vought should be "using the full scope of [the CFPB's] authorities to address excessive credit card costs and to crack down on bad actors" instead of trying to dismantle the bureau.

She concluded her letter with a direct challenge: "Either President Trump is not serious about making credit cards more affordable or you are insubordinately disregarding his direction."

The CFPB did not immediately respond to a request for comment.