CFPB Director Vought plans to remove numerous 'guidelines' en masse
Consumer Financial Protection Bureau (CFPB) Shifts Focus on Guidance Documents
The Consumer Financial Protection Bureau (CFPB) has announced a new policy on the use of guidance documents, as articulated by Acting Director Russ Vought. This policy aims to reduce regulatory and compliance burdens by withdrawing numerous non-binding guidance documents and limiting guidance issuance to cases where it is truly necessary and beneficial.
Key elements and significance of this policy include:
- The CFPB withdrew 67 guidance documents in May 2025, emphasizing that many such guidance documents do not create substantive rights and therefore cannot create reliance interests.
- The withdrawal is intended to align guidance issuance with the Bureau’s current priorities of reducing compliance burdens and focusing enforcement on clear instances of consumer harm such as fraud, rather than broad or abstract unfairness or abuse claims.
- Acting Director Vought's approach signifies a shift towards traditional enforcement focused on "actual fraud against consumers," measurable damages, and direct consumer redress, particularly in targeted areas such as mortgage protection and servicemembers’ issues.
- This new policy also reflects a broader regulatory philosophy aimed at streamlining regulations, avoiding duplicative federal-state enforcement, and prioritizing efficient monetary redress over penalties where possible.
- Acting Director Vought’s policy explicitly rejects reissuing certain previously issued guidance, such as the Medical Debt Collection Advisory Opinion, citing concerns about statutory overreach and compliance with administrative procedures.
In summary, the purpose of the CFPB’s new policy on guidance documents under Acting Director Russ Vought is to modernize and streamline the agency’s regulatory approach by withdrawing unnecessary or legally questionable guidance, focusing enforcement on clear consumer harms, reducing burdens on regulated entities, and ensuring that guidance issuance is transparent, necessary, and grounded in statutory authority.
Notably, Acting Director Vought wrote that the CFPB under its Biden-era director, Rohit Chopra, has engaged in "weaponized practices that treat legal restrictions on its authorities as barriers to be overcome." The eight office chiefs have been directed to flag previous CFPB guidance that fits the principles Vought outlined and explain why it should not be withdrawn.
The new policy also marks a departure from the CFPB's previous approach to guidance, which has been criticized for its use of mandatory language like "shall," "must," "required," or "requirement." Under the new policy, guidance should state in a disclaimer that it is not legally binding and should refer to recommended practices. Noncompliance with guidance will not trigger enforcement action.
This policy shift comes two weeks after 14 Republican members of the House Financial Services Committee wrote to Vought about the CFPB's use of guidance. The memo sent by Vought lists more than 100 policy statements, interpretive rules, advisory opinions, and other guidance that will be subject to review and could be rescinded by the agency.
The CFPB's new policy on guidance documents is part of a broader effort to reform the agency and align it with a more restrained policy stance focused on clarity, minimizing overlap with other regulators, and avoiding enforcement based on novel or expansive legal theories.
- The Consumer Financial Protection Bureau (CFPB), under Acting Director Russ Vought, has cropped up a new policy on guidance documents to lessen regulatory and compliance burdens by withdrawing 67 non-binding guidance documents and limiting future guidance issuance to necessary instances.
- This policy change by the CFPB signifies a shift towards traditional enforcement, focusing more on actual consumer harm like fraud, rather than abstract unfairness or abuse claims, as part of a broader effort to reform the agency and adopt a more restrained policy stance.
