U.S. President Donald Trump fires Rohit Chopra, the Consumer Financial Protection Bureau director.
A source familiar with the matter told us that on Saturday, Mr. Chopra received an email from the White House informing him of the firing.
Chopra, who has been targeted by Republican lawmakers for imposing restrictions on financial institutions in favor of consumers, announced his departure in a post on X (formerly Twitter) on Saturday.
Further, Chopra confirmed by writing that his terms as Director of the CFPB have concluded, and the CFPB is ready to cooperate with the public and work with the next Director. The CFPB has not commented on the post.
The White House official said hiring the next director is an executive-level decision, and they are sure that some high-profile candidate will take charge.
Chopra’s Legacy at the CFPB
Major consumer banks like Bank of America and JPMorgan Chase are among the brands facing lawsuits from the CFPB. They, alongside well-reputed tech industry leaders, have approached Trump to remove Chopra from his role, which was made possible by a 2020 Supreme Court ruling that enabled Mr. President to fire CFPB directors.
In 2021, former President Joe Biden appointed Chopra as Director of the bureau regulating financial agencies. The Director of the CFPB, who under the law was to serve a five-year term, also serves as a board member of the Federal Deposit Insurance Corporation, voting on key banking regulations. Chopra will no longer be a part of that, either.
In his tenure at the CFPB, Chopra spearheaded several controversial regulations, especially the one in which limiting overdraft fees banks can charge was involved, as well as late fees credit card companies could collect from their customers.
The rule aiming to cap credit card late surcharges at $8 was later struck down by a federal judge. The CFPB rule on overdraft fees, which would cap them at $5 only—a substantial savings from the $35 that consumers are typically charged—was finalized at the end of last year but is likely to face legal challenges as well.
Under Mr. Chopra’s leadership, the CFPB also developed a rule making personal data more accessible to make it easier to switch banks. Before Trump took charge this month, the agency finalized a rule to remove about $49 billion in medical bills from credit reports.
The Evolving Role of the CFPB
The customer watchdog agency was created after the 2008 financial crisis through the Dodd-Frank Wall Street Reform and Consumer Protection Act. Democratic Sen. Elizabeth Warren, who began advocating for it in 2007 as a Harvard Law School professor, created it.
Warren, being a ranking member of the Senate Banking, Housing, and Urban Affairs Committee, congratulated Chopra for “holding Wall Street accountable for cheating hard-working families,” she said Saturday in her statement.
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Despite their differences with Trump, Warren and many other progressive lawmakers, including Sen. Bernie Sanders, have signaled their support for the president’s campaign promise to temporarily cap credit interest rates at 10 percent — less than half of current rates, according to Federal Reserve data.
To fulfill this promise, Warren said Trump “needs a strong CFPB and a strong CFPB director,” adding that “if President Trump and Republicans decide to cower to Wall Street billionaires and destroy the agency, they will fight with their hands.”
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