Rohit Chopra Out at CFPB After Firing; Treasury Secretary Bessent Designated Acting Director
Over the weekend, President Donald Trump fired Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra in the most recent example of Biden administration holdovers being forced out of their positions. The move was widely expected, as President Trump was likely to tap a new director for the CFPB, which is a frequent target of Republican criticism and attacks.
In a social media post about his departure, Chopra thanked Americans who “shared their ideas and experiences” with the CFPB, according to the Associated Press. “You helped us hold powerful companies & their executives accountable for breaking the law, and you made our work better,” Chopra said.
Chopra was named by former President Biden to direct the agency in 2021, and although the position has a 5-year term, the Supreme Court ruled in 2020 that the president can fire the director at will. The Trump administration has announced Treasury Secretary Scott Bessent as acting head of the agency, according to the Washington Post. A full-time Director has not yet been named, but since Bessent has already been confirmed by the Senate to another position, he is eligible to lead the agency in an acting capacity.
As one of his first actions as Acting Director, Bessent ordered the CFPB to freeze all ongoing activities, including rulemakings, communications, litigation, and other activities. Effective dates for all final rules that have not yet taken effect are also suspended, including the ban on including medical debt on consumer credit reports and capping bank overdraft fees at $5.
Chopra established a reputation as an aggressive watchdog over the nation’s largest banks, fighting against junk fees and encouraging competition, transparency, and consumer financial health. Under his directorship, the CFPB contended with industry litigators who challenged many rules, including agency rules on consumer data rights, small business lending, and credit card late fees.
“The incoming Administration has a unique and important opportunity to institute meaningful reforms to the CFPB, in both the immediate and long-term, that can help transform the agency into the credible and durable regulator Americans deserve,” the Consumer Bankers Association wrote last month in a white paper, according to NPR.
In 2024, the Supreme Court rejected a challenge to the CFPB’s funding structure, ruling that the way the agency is funded does not violate the constitution. The CFPB does not rely on the annual budget process in Congress, instead it is directly funded by the Federal Reserve.
