WASHINGTON (AP) — The Consumer Financial Protection Bureau has dropped an investigation into a buy now, pay later company with close ties to President Donald Trump's son Donald Trump Jr., saying the investigation was conducted in a biased manner and based off politics.
The CFPB on Tuesday notified Credova Financial, a subsidiary of Public Square Holdings, where Trump Jr. is a board member and investor, that it was no longer under investigation. Public Square is a directory of businesses that sell American-made products, including financing for firearms and family pets, that market to conservative-leaning customers. Credova provides buy now, pay later services to Trump Jr.’s GrabAGun firearms marketplace, which went public this year.
The agency says the investigation, initiated during Democrat Joe Biden’s presidency, was politically motivated against firearms companies and Trump Jr. However, the company has a record of dozens if not hundreds of consumer complaints and settlements over state consumer protection violations.
The closure of the investigation also comes when the CFPB, a watchdog agency that helps oversee the nation’s banks and financial services companies, has been undoing rulemaking, dropping other cases and ending law enforcement work that was done under previous administrations, including Trump's first term.
The CFPB in Trump's second term determined the Credova investigation “exemplifies the type of weaponization against disfavored industries and individuals" that Trump and the agency's acting director, Russell Vought, are committed to ending, according to a letter sent to the chief counsel of Public Square Holdings. The CFPB during Biden's term ratcheted up settlement demands on the company the day Trump Jr. joined Public Square's board of directors, the letter said.
Former CFPB employees, from during Biden's term, declined to speak about the decision, saying they're not permitted to discuss investigations.
Michael Seifert, chairman and CEO of Public Square, said in a statement that the closure of the CFPB investigation “confirms the strength and integrity of our company and validates the trust our merchants and consumers place in us” and is ”a win for our entire company, our board, our customers, and a 2nd Amendment community that has seen years of government attempts to regulate businesses like ours out of existence."
However, the firm had for years been accused of charging junk fees to customers or violating state consumer protection rules.
In 2021, Credova and another Nevada-based finance firm reached a settlement with the Massachusetts attorney general's office to waive balances totaling more than $126,000 to resolve allegations they illegally leased dogs in violation of the Massachusetts Consumer Protection Act.
In January 2024, Credova and the California Department of Financial Protection and Innovation entered into a consent order to resolve allegations the firm failed to disclose potential third-party fees to consumers. As a result, Credova was required to pay a $50,000 penalty and disclose potential third-party convenience fees to consumers in the future.
There have also been more than 50 consumer complaints filed against Credova to the CFPB, a search of the database shows. Many of the complaints relate to debt collection practices.
A search of the Better Business Bureau Database shows 134 complaints have been filed against the company in the past three years, with 21 closed in the past 12 months. A review of many of those complaints relate to customers being charged undisclosed junk fees.
Trump Jr. joined the board of directors for Public Square’s parent company, PSQ Holdings, in December 2024.
Andy Surabian, a spokesman for Trump Jr., said in a statement Trump Jr. “had nothing what so ever to do with this and it’s a classic cheap media tactic to imply otherwise when the AP knows that they have no evidence to the contrary.” Trump Jr. owns 697,403 shares in Public Square, which are worth roughly $1.1 million.
Donald Sherman, the executive director and chief counsel of Citizens for Responsibility and Ethics in Washington, said the CFPB's dropping of the case against Credova is “emblematic of the toxic stew of corruption” associated with administration officials assisting allies.
“It's not just that this particular company has ties to the president's son, who has along with his father sought to monetize and profit off of the presidency at every step of the way," Sherman said. "It's also that this administration has taken aggressive actions to use every aspect of federal law enforcement to benefit its perceived political allies and harm its enemies.”
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Associated Press writer Ken Sweet in New York contributed to this report.
