The Consumer Financial Protection Bureau is moving to drop a suit against Capital One brought during the Biden administration just last month that accused the bank of cheating customers out of a collective $2 billion.
A one-line court filing Thursday said the agency was seeking to voluntarily dismiss its suit with prejudice, meaning that it would not be revived.
An agency spokesperson did not immediately respond to a request for comment.
In a statement, Capital One said: “We welcome the CFPB’s decision to dismiss this action, which we strongly disputed.”
Then-CFPB Director Rohit Chopra brought the suit in January, accusing the banking giant of "conflating" two similarly named savings accounts and failing to notify them that one of the accounts paid out substantially more in interest payments.
“The CFPB is suing Capital One for cheating families out of billions of dollars on their savings accounts,” Chopra said at the time. “Banks should not be baiting people with promises they can’t live up to.”
Capital One had denied the allegations.
“We are deeply disappointed to see the CFPB continue its recent pattern of filing eleventh hour lawsuits ahead of a change in administration," it said in a prior statement. "We strongly disagree with their claims and will vigorously defend ourselves in court,” the company said in a statement."
The move is the latest sign that the agency under Trump plans to scale back Biden-era actions, while the future of the CFPB's existence continues to be debated.
Earlier Thursday, the CFPB dismissed a suit against a student loan servicer it had accused of illegally collecting on student loans discharged in bankruptcy. Last week, it dropped a case against an online lender it previously accused of deceiving borrowers about loan costs.
Meanwhile, Trump's nominee to head the agency, Jonathan McKernan, told a Senate committee earlier Thursday that he believed the CFPB had recently overstepped the bounds of its mandate, and that — assuming it continues to operate — it should become more streamlined and accountable.
McKernan's nomination process has come amid calls by Trump administration officials to dismantle the CFPB outright. Office of Management and Budget head Russell Vought, who has nominally been put part in charge of the agency, issued a directive earlier this month to suspend all work there. And Elon Musk, the figurehead of Trump's Department of Government Efficiency, has stated his desire to "delete" the bureau.
Earlier this month, a judge blocked efforts to enact mass terminations at the agency.
