President Trump has appointed Treasury Secretary Scott Bessent as the Consumer Financial Protection Bureau’s acting director, three days after firing former director Rohit Chopra a little more than a year before his term was set to end.
“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 in a statement on Monday.
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Bessent’s first actions include freezing the enforcement of rules made during Chopra’s last days, including removing medical debt from consumer’s credit reports and capping overdraft fees to $5. There’s no word on what Bessent will do regarding Chopra’s latest string of lawsuits against mortgage lenders over exorbitant fees, illegal kickbacks and other predatory practices. The bureau filed a lawsuit in December against Rocket Mortgage for breaking the Real Estate Settlement Procedures Act for allegedly providing kickbacks in exchange for referrals and requiring agents and brokers to steer their clients toward the company’s products.
In his final statement as CFPB director, Chopra said he was proud to serve consumers and fight for their rights.
“It has been an extraordinary privilege to serve as Director of the Consumer Financial Protection Bureau (CFPB) and as a Member of the Board of Directors of the Federal Deposit Insurance Corporation since 2021, as well as to serve as a Commissioner on the Federal Trade Commission from 2018 to 2021,” he said in a letter addressed to President Trump. “I am grateful to both President Biden and you for nominating me and to the United States Senate for confirming me to these positions.”
“I’m proud that the CFPB has done so much to restore the rule of law,” he added. “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.”
Although former President Biden appointed him, Chopra said he was prepared to work with the new Administration to stop Chinese and Russian data brokers from accessing Americans’ data and preventing financial and technology firms from canceling users’ accounts for exercising their right to free speech.
“… We have also put forth policies to block financial firms and technology giants from debanking and deplatforming Americans based on their speech or religious views, while also restoring freedom and other individual rights,” he said. “The next CFPB Director will also be able to act on the evidence we have already uncovered in law enforcement investigations of Big Tech and Wall Street firms. We have also analyzed your promising proposal on capping credit card interest rates, and we see a path for enacting meaningful reforms.”
Chopra’s firing elicited mixed reactions. The Consumer Federation of America lamented the director’s early departure, saying that he left “behind an impressive record” and fulfilled the “mission to protect consumers.”
“Under Director Rohit Chopra, the CFPB prioritized our pocketbooks over corporate profits,” CFA Director of Financial Services Adam Rust said in a written statement. “Since he began in his role in September 2021, the CFPB has fought against junk fees, repeat offenders, big tech evasions, and corporate deception. It has championed competition, transparency, accountability, and consumer financial health.”
“The agency applied its enforcement authority to address substantially harmful and widely occurring practices at the largest financial institutions, and through the lens of its supervisory authority, connected the dots to reveal how risky financial products can cause financial peril for working people,” he added.
Meanwhile, bankers seem to be pleased with Chopra’s early exit.
The Consumer Bankers Association said days before the Inauguration they hoped Trump would appoint a new CFPB director that would roll back the restriction on overdraft fees. “The CFPB largely dismissed concerns raised by industry commenters16 about the CFPB’s lack of authority to issue this rule and most importantly the impact of the rule on consumers,” CBA said in a white paper. “… Accordingly, a new CFPB should extend the effective date for the rulemaking and then re-propose the rule.”
None of the nation’s largest mortgage and lending groups have issued a statement about Chopra’s exit; however, it’s not hard to imagine that they’re in the same boat as bankers, with Chopra’s last actions focusing on mortgage lenders. Chopra said the CFPB’s investigations yielded more than $120 million in refunds for borrowers in 2024 alone.
