The CFPB’s Collaborative Discussion with Bilt
The Consumer Financial Protection Bureau (CFPB) has recently elected not to pursue a public enforcement action against Bilt, a fintech company that issues credit cards. This decision comes after a turbulent transition between bank partners earlier this year, which led to a surge in customer complaints regarding missed rent payments and poor customer service.
The CFPB disclosed on Tuesday that officials had met with Bilt to discuss the issues that arose during its transition between bank partners in February of this year. Bilt had switched from its previous partner, Wells Fargo, to a new bank partner. This switch resulted in a significant increase in customer complaints to the CFPB and other consumer protection groups.
The CFPB’s Monitoring Efforts and Bilt’s Response
The CFPB has been in discussions with Bilt about the steps it has taken to address all transition-related technical issues. According to the agency, Bilt’s submitted documentation appears to show that the fintech firm has resolved all the issues, and its systems are back on track. The CFPB will continue to monitor Bilt’s efforts and will provide further updates once it is satisfied that all necessary corrections have been made.
The Trump Administration’s Impact on the Agency
This announcement comes at a time when the Trump administration is trying to reduce the number of staff at the agency and has dropped previous enforcement actions. The CFPB, under the leadership of acting director Russell Vought, recently implemented a return-to-office plan for its employees. This move is expected to further reduce the agency’s headcount, following multiple previous attempts to cut staff and even shutter the agency.
Additionally, the CFPB has dropped or dismissed various enforcement actions and lawsuits that were initiated during the Biden administration. The approach to the Bilt matter is seen by some as a reflection of the agency’s shift in direction under its previous director, Rohit Chopra.
Bilt’s Efforts to Rectify the Situation
Bilt is reportedly in the process of reviewing requests from affected customers and is planning to reimburse fees for about 500 customers. However, the company has declined to comment on the CFPB statement.
Senator Elizabeth Warren’s Criticisms
Last week, Senator Elizabeth Warren, D-Mass., wrote an open letter to Bilt questioning the company’s handling of its bank partner switch in February. She stated that Bilt has yet to provide a reasonable explanation for why its transition between bank partners caused so much chaos for its customers.
Warren also expressed concerns about Bilt’s new “Bilt Card 2.0”, launched in February as a product overhaul and a replacement to the Wells Fargo cards. She questioned the fintech’s compliance with the 2009 Credit CARD Act, which requires card issuers to provide users with a statement at least 21 days before payment is due in order to charge late fees.
Bilt’s History and Future Plans
Bilt initially launched its card product in 2021 with Evolve Bank and Trust as its partner bank. Wells Fargo then took over Bilt’s card accounts in 2022 as part of the bank’s strategy to expand its credit card business. Bilt has been steadily winding down its relationship with Evolve since then, according to a company representative.
All of Bilt’s new card products and customer housing accounts are now issued by Column Bank, with Cardless as its card servicer. However, Bilt’s past relationship with Evolve did expose the card issuer to a data breach at the bank in 2024.
In response to the Senate Banking Committee letter, Bilt issued a statement last week saying that the company’s card transition in February “attracted unexpectedly high demand, and some of our members experienced gaps in service that are simply unacceptable to us.”
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