RSSPresident Donald Trump dismissed Rohit Chopra as director of the Consumer Financial Protection Bureau on Jan. 31. Four days later, Trump designated Secretary of the Treasury Scott Bessent as CFPB acting director.
The future of the bureau remains in question as Bessent has ordered a freeze to work at the bureau, The Wall Street Journal reported on Feb. 3. The freeze covers enforcement actions and decisions about in-progress litigation. Staff were also reportedly directed to suspend the effective dates for requirements that had been completed but are not in effect.
Notably, Trump has not announced his long-term vision for the CFPB nor named a permanent appointee to the director position, even as he and other Republican lawmakers have criticized the bureau. Sen. Ted Cruz (R-Texas) recently said he would move forward a proposal to cut the CFPB’s funding, which could grant Congress greater authority over the bureau or even kill the CFPB.
However, Elizabeth Warren (D-Mass.) pledged her support for the CFPB on X. “If President Trump is serious about lowering costs and capping credit card interest rates, he needs a strong CFPB and a strong CFPB director,” she said. “If he and Republicans decide to cower to Wall Street billionaires and try to destroy the agency, they will have a fight on their hands.”
“I look forward to working with the CFPB to advance President Trump’s agenda to lower costs for the American people and accelerate economic growth,” Bessent said.
Chopra posted a letter announcing his departure from the CFPB Feb. 1 on X. He cited the bureau’s work in curbing “junk fees”, reducing errors on medical bills and limiting data broker surveillance. Chopra had served as CFPB director since 2021. He was also a board member of the FDIC and a commissioner on the Federal Trade Commission.
“I’m proud that the CFPB has done so much to restore the rule of law,” Chopra wrote. “Since 2021, we have returned billions of dollars from repeat offenders and other bad actors, implemented dormant legal authorities and long-overdue rules required by law, and given more freedom and bargaining leverage to families navigating a complex and confusing financial system.”
Banking trade groups supported Bessent’s appointment. American Bankers Association President and CEO Rob Nichols said the bureau’s actions in recent years exceeded its statutory authority, caused economic harm and imposed significant expenses on consumers.
“We urge Secretary Bessent to begin reversing the damage caused by these misguided regulatory actions and stand ready to support his efforts to chart a better course for the bureau,” Nichols said. “Appropriately tailored regulation is the key to lowering costs for consumers and ensuring America’s banks can play their essential role in accelerating economic growth.”
House Financial Services Committee French Hill (R-Ark.) called Chopra’s removal “a critical step in restoring Americans’ faith in our financial regulators.
“I look forward to working with Acting Director and Treasury Secretary Bessent to finally rein in this unaccountable agency by putting the CFPB under the appropriations process, making it a bipartisan commission, and providing appropriate statutory guardrails,” he said.
