Senator Warren Criticizes CFPB Director on Credit Card Costs

Senate Banking Committee Ranking Member Elizabeth Warren accused CFPB Acting Director Russell Vought of disregarding President Trump’s directive to cap credit card interest rates.

In her letter, Senator Warren argued that average annual percentage rates ("APR") have reached their highest levels since 2015—hitting 25.2 percent for general-purpose cards—and that consumers paid a cumulative $160 billion in credit card interest in 2024. Senator Warren asserted that Mr. Vought's efforts to dismantle the agency directly contradict the administration's stated goal of making credit cards more affordable. She asserted that the current leadership has empowered banks to "rip off" Americans by halting supervision, attempting to fire staff, and abandoning a rule that would have lowered late fees to $8.

Senator Warren also warned that financial institutions are hoarding profits, noting that the spread between the federal funds rate and APRs has hit a historical high of 16.4 percent. She requested that the CFPB immediately (i) reinstate the rule capping credit card late fees; (ii) promulgate rules to stop deceptive deferred interest promotions; and (iii) resume examinations for compliance with the Truth in Lending Act and the CARD Act.

Senator Warren called on Mr. Vought to utilize the agency's staff to investigate the over 90,000 credit card complaints received in 2025.