WASHINGTON, D.C. — Bilt cardholders received mistaken debt collection notices two weeks after Russell Vought testified in July 2026 that the company had resolved its issues through the Consumer Financial Protection Bureau’s new collaborative approach. Bilt cardholders experienced decreases in their credit scores due to the mistaken debt collection notices.

Vought described the new approach as focusing on deregulation, embracing humility, and adopting a collaborative approach with companies. He cited Bilt as evidence of the success of the new approach in his Congressional testimony.

"We reached out to the company, and before it got to the adversarial part of the process, they were able to fix their issues," Vought said. The agency posted a statement on its website indicating that information provided by Bilt showed the firm was back on track.

According to HousingWire, the bureau said it met with Bilt Rewards over consumer issues during its transition away from Wells Fargo and directed full redress for harmed customers. Bilt said it has offered reimbursement for certain fees and expects to compensate 500-plus additional customers by June 4.

Mike Pierce runs the consumer advocacy group Protect Borrowers. He offered a different assessment of the regulatory handling of the fintech company. "What we saw Vought do with Bilt is innovative — and I don’t mean that as a compliment," Pierce said.

Bilt had previously operated under a different banking arrangement. Bilt signed a seven-year partnership with Wells Fargo to offer Bilt-branded credit cards. Wells Fargo ended its partnership with Bilt four years early. Wells Fargo was losing as much as $10 million a month on its partnership with Bilt.

Vought term-limited out as acting director of the Consumer Financial Protection Bureau in early August 2026. Vought remains a senior adviser to the Trump administration. Brian Johnson is the Trump administration’s nominee for full-time director of the Consumer Financial Protection Bureau. Brian Johnson is an executive at Capital One bank.

Federal courts blocked efforts by the Trump administration to close the Consumer Financial Protection Bureau. A federal judge stated that the administration acted with "complete disregard" for Congress in its efforts to close the Consumer Financial Protection Bureau.

Why It Matters

The sequence of events connects regulatory policy changes to specific consumer outcomes in the fintech sector. Vought cited Bilt as a model for a collaborative regulatory approach, yet cardholders suffered credit score damage shortly after his testimony noted the resolution. The situation illustrates the stakes involved in shifting from adversarial enforcement to cooperative supervision, particularly when technical rollouts fail.

The background of the Bilt partnership dissolution and subsequent relaunch provides context for the volume of consumer complaints. With Wells Fargo exiting the partnership early due to reported losses, Bilt moved to new financial partners, leading to the operational failures described by customers. The regulatory response, or lack thereof, remains a point of contention between administration officials and consumer advocates.

Timeline

On January 14, 2025, the Consumer Financial Protection Bureau published a proposed rule titled "Prohibited Terms and Conditions in Agreements for Consumer Financial Products or Services (Regulation AA)". On February 1, 2026, Bilt relaunched its credit cards with new financial partners. On the same date, customers reported that their credit limits were lowered from one card to the next during the Bilt 2.0 rollout. Also on February 1, 2026, customers reported that rent payments were paid late, double-charged, or not paid at all during the Bilt 2.0 rollout. Additionally on February 1, 2026, customers reported that their cards were frozen during the Bilt 2.0 rollout.

What's New

Additional reporting indicates that in February 2026, Bilt relaunched its credit cards with new financial partners, but the rollout of 'Bilt 2.0' was a debacle. Customers said their rent payments were paid late, double-charged or not paid at all. Credit limits had been lowered from one card to the next.

Their cards were inexplicably frozen. Further context shows the Consumer Financial Protection Bureau published a proposed rule titled Prohibited Terms and Conditions in Agreements for Consumer Financial Products or Services (Regulation AA) on January 14, 2025. Later reporting confirmed that Vought testified before the Senate Banking, Housing, and Urban Affairs Committee on July 16, 2026.

How Sources Differ

Sources differ on the activities and status of the Consumer Financial Protection Bureau. Consumer Financial Protection Bureau personnel records state that Vought ordered mass layoffs at the Consumer Financial Protection Bureau during the first 18 months of the Trump administration. In contrast, federalregister.gov notes that the Consumer Financial Protection Bureau published a proposed rule titled Prohibited Terms and Conditions in Agreements for Consumer Financial Products or Services (Regulation AA) on January 14, 2025.