CFPB Under Trump: Reg F’s Future

Why Collectors Are Watching the CFPB Again

If you run a third-party collection agency, you already know how much the Consumer Financial Protection Bureau (CFPB) impacts compliance. From Regulation F’s 7-in-7 rule to strict validation notice requirements, the CFPB is still the industry’s most important watchdog.

But with President Trump back in the White House, the agency is once again in flux. A wave of layoffs, leadership changes, and budget cuts have dramatically reshaped the CFPB in 2025. For agencies, the question isn’t whether Reg F is still law—it is—but how aggressively that law will be enforced.

Reg F: The Rulebook That Reshaped Collections

When the CFPB rolled out Regulation F in late 2021, it reshaped debt collection compliance under the Dodd-Frank Act:

• Call frequency caps: Reg F sets a federal “7-in-7” limit, but states like New York add extra call restrictions, and California layers on licensing and disclosure requirements that make compliance even tougher.
• Itemized validation notices: Detailed balance breakdowns for credit cards, medical debt, and student loans.
• Digital guardrails: Emails, text messages, and even social media messages brought under federal scrutiny.
• Time-barred debt: Agencies barred from using vague or misleading language when attempting recovery.

For today’s agencies, Reg F remains the operating manual for modern collections. Courts, creditor clients, and credit reporting providers expect you to treat it as the baseline—not a bonus.

Trump’s First Term: A Softer CFPB

During Trump’s first term (2017–2021), the CFPB’s role shifted dramatically:

• Leadership turnover: Trump appointed acting directors who rolled back enforcement.
• CFPB staff cuts: Headlines about layoffs and low morale.
• Enforcement pullback: Major cases against banks and payment apps slowed.
• Legal challenges: The Supreme Court weighed in on whether the CFPB’s single-director structure was constitutional.

By the end of his first term, critics argued that the CFPB’s bite as a consumer watchdog had weakened—though Reg F hadn’t yet taken effect.

Biden Rebuilt, Then Trump Returned

The Biden administration moved in the opposite direction, restoring budgets, staffing, and aggressively policing consumer financial products. Enforcement focused on:

• Overdraft practices at large banks like Capital One.
• Credit card late fees.
• Medical debt reporting restrictions.
• Non-bank providers like fintech lenders and BNPL firms.

But with President Trump’s return in 2025, the pendulum has swung back again.

2025 Updates: Trump’s CFPB in Action

The second Trump administration has already reshaped the CFPB in dramatic ways. Here are the latest developments as of August 2025:

1. Mass Layoffs Approved

In mid-August, a federal appeals court cleared the way for the CFPB to lay off nearly 80% of its workforce—reducing staff from about 1,700 to just over 200 employees. Critics say this guts the agency’s ability to oversee financial institutions and lenders; supporters argue it reins in a bloated federal agency.

2. Budget Slashed by “One Big Beautiful Bill”

Trump signed the One Big Beautiful Bill Act (OBBB), cutting the CFPB’s funding by almost 50%—from 12% to 6.5% of the Federal Reserve’s budget. With fewer resources, the agency faces real limits on its enforcement actions and rulemaking capacity.

3. Russell Vought Installed as Acting Director

In February 2025, Trump tapped Russell Vought, former Office of Management and Budget director, to serve as acting CFPB director. Under his leadership, the agency:

• Suspended several pending rules, including those targeting data brokers.
• Dropped certain enforcement actions.
• Temporarily paused operations while restructured.

4. Credova Investigation Dropped

The CFPB ended its probe into Credova Financial, a “buy now, pay later” provider with ties to Donald Trump Jr., citing bias in the original investigation. This decision raised eyebrows in the financial services sector about selective oversight.

5. Open Banking Rules Restarted

In contrast, the CFPB has restarted open banking rulemaking, revisiting how consumers and borrowers can access and share financial data. This signals that while some consumer protections are being scaled back, others may move forward under revised terms.

6. Disparate Impact Enforcement Curtailed

A recent executive order ended disparate impact enforcement across federal agencies, including the CFPB—scaling back civil rights oversight in consumer finance and lending practices.

What This Means for Agencies

Even with a weakened CFPB, Reg F remains the law. Here’s what agency leaders should keep in mind:

• Enforcement is lighter, not gone. Fewer staff means fewer cases, but state regulators (e.g., New York) continue to expand restrictions, especially around medical debt and credit reporting.
• Clients demand compliance. Banks, credit unions, and large lenders won’t tolerate partners who gamble on relaxed enforcement.
• Federal courts remain active. Even if the CFPB files fewer cases, consumer complaints can still trigger litigation.
• State laws are rising. Reg F sets the baseline, but California’s licensing rules, New York’s call restrictions, and Colorado’s bonding requirements create extra hurdles that agencies must layer on top of federal limits.

For agencies, cutting corners now could mean losing clients, facing federal court challenges, or showing up on social media for the wrong reasons.

Why Automation Is More Important Than Ever

Agencies using compliance automation tools have the upper hand. Platforms like Aktos can:

• Generate Reg F-compliant validation notices automatically.
• Track call frequency across collectors and accounts.
• Manage consent for text, email, and social media outreach.
• Document compliance in case of audits or court of appeals challenges.

When the federal agency overseeing you is unstable, your safest move is to rely on systems that don’t miss a rule.

Learn more: Best Debt Collection Software for 2025 | Aktos 

Key Takeaways

• The CFPB under Trump is being reshaped—staff cut by 80%, budget slashed nearly in half, and Russell Vought steering as acting director.
• Reg F still applies. Even with fewer enforcement actions, agencies must stay compliant to keep clients and avoid lawsuits.
• States are filling the gap. Expect aggressive rulemaking and consumer protection efforts from states like New York.
• The best defense is compliance automation that ensures every outreach, notice, and disclosure is airtight.

Conclusion

Whether you align with the Biden administration’s approach or the Trump administration’s, one fact remains: Reg F isn’t going away. The debate is about how strongly it will be enforced.

For 3rd-party agencies, the safest strategy is simple: stay Reg F compliant, lean on technology to minimize human error, and keep your clients confident in your processes—regardless of who’s in the White House.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Debt collection agencies should consult with legal counsel to ensure compliance with all applicable federal and state regulations.