CFPB Drops Toyota and Walmart Cases, Drawing Criticism Over Consumer Protection Rollbacks

The U.S. Consumer Financial Protection Bureau (CFPB) has canceled a major 2023 settlement with Toyota’s (NYSE:TM) financing arm, originally imposed over allegations that the company steered consumers into paying for costly, unwanted add-on products. The decision eliminates Toyota’s obligation to pay $60 million in penalties and consumer redress, including a $12 million fine and $48 million in refunds.

The CFPB also dropped a lawsuit against Walmart (NYSE:WMT) and workforce payments firm Branch, which was filed over claims that more than a million delivery drivers were forced into using fee-heavy payment accounts, costing them over $10 million in “junk fees.”

These moves align with President Donald Trump’s ongoing efforts to reduce CFPB authority. Since taking office, the Trump administration has worked to dismantle most enforcement actions inherited from the previous leadership, reflecting Trump's public criticism of the agency and its role in financial oversight.

Walmart expressed satisfaction with the CFPB’s decision, calling the case flawed and rushed. Toyota also welcomed the outcome, stating its commitment to improving customer experience. The CFPB order offered no explanation for reversing the settlement, which was originally set to last five years.

According to the 2023 findings, Toyota dealers allegedly misled buyers into believing extra products—like damage or theft protection—were required. The CFPB claimed Toyota made cancellations deliberately difficult, routing over 118,000 customers to a hotline that discouraged refunds.

Former CFPB Director Eric Halperin, who resigned in February, criticized the rollback as a "corporate pardon," warning that the Trump-era CFPB is not only retreating from enforcement but also rewarding companies accused of wrongdoing.

The CFPB and Branch have not responded to requests for comment. The White House has also remained silent on the matter.