WASHINGTON (AP) – The Consumer Financial Protection Bureau (CFPB) has concluded an investigation into Credova Financial, a buy now, pay later company affiliated with Donald Trump Jr., claiming the inquiry was politically motivated and biased. The announcement was made on Tuesday, signaling the end of scrutiny into the subsidiary of Public Square Holdings, an organization where Trump Jr. serves as a board member and investor.
Public Square Holdings operates a directory that showcases businesses selling American-made products, including financing options for firearms and pets, focusing on a conservative clientele. Credova Financial provides buy now, pay later services specifically for Trump Jr.'s GrabAGun firearms marketplace, which debuted on the stock market in 2023.
The CFPB stated that the investigation, which commenced during President Joe Biden's administration, was driven by political bias against both firearms companies and Trump Jr. despite Credova's numerous consumer complaints and settlements linked to violations of various state consumer protection laws. The latest closure follows a trend in which the CFPB has reversed rules and ceased cases initiated during prior administrations, including that of Trump’s first term.
In a letter addressing Public Square Holdings, the CFPB indicated that the investigation of Credova exemplified the "weaponization against disfavored industries and individuals" that the agency under Trump aims to abolish. The CFPB also highlighted that the demands for settlements against Credova had intensified coincidentally on the day Trump Jr. joined the board of Public Square.
Michael Seifert, CEO and chairman of Public Square, expressed satisfaction in a statement regarding the end of the CFPB investigation, asserting it affirmed the company’s integrity and the trust placed in it by customers and merchants. He also framed the closure as a victory for the Second Amendment community, which has faced prolonged governmental attempts to regulate businesses like his under challenging circumstances.
Despite this assertion of integrity, Credova has faced longstanding accusations of imposing excessive and undisclosed fees on consumers, alongside breaching state consumer protection regulations. In 2021, the company reached a $126,000 settlement with the Massachusetts attorney general’s office over alleged illegal dog leasing activities. Additionally, in January 2024, a consent order was established between Credova and the California Department of Financial Protection and Innovation, which required the company to pay a $50,000 penalty due to failures in disclosing potential third-party fees to consumers.
Moreover, over 50 formal complaints have been lodged against Credova with the CFPB, largely concerning issues related to debt collection practices. An analysis of the Better Business Bureau database indicated that the company has received 134 complaints within the last three years, with a significant number highlighting undisclosed junk fees charged to customers.
Trump Jr. joined the board of directors for Public Square's parent company, PSQ Holdings, in December 2024. Andy Surabian, a spokesperson for Trump Jr., commented that the claims of his involvement in the CFPB investigation are baseless and represent a typical media tactic lacking evidence. Trump Jr. reportedly holds 697,403 shares in Public Square, valued at approximately $1.1 million.
Donald Sherman, executive director and chief counsel of Citizens for Responsibility and Ethics in Washington, critiqued the CFPB’s decision to dismiss the investigation, describing it as reflective of a broader culture of corruption. He pointed out that this situation illustrates the administration's tendency to utilize federal law enforcement to favor allies while disadvantaging opponents, linking it to the ongoing monetization of presidential connections by Trump and his son.
Ultimately, the conclusion of the CFPB's investigation into Credova highlights a complex interplay between consumer protection laws, political motivations, and the financial interests tied to high-profile figures, raising questions about equitable enforcement in the banking and financial services sectors.
