President Trump has fired Rohit Chopra, the director of the Consumer Financial Protection Bureau (CFPB). Chopra was one of the remaining regulators from the previous Democratic administration. In a letter to President Trump, Chopra said it was an “extraordinary privilege” to serve as the CFPB director.
“With so much power concentrated in the hands of a few, agencies like the CFPB have never been more critical,” he wrote. According to a person familiar with the notice, Chopra was notified of his firing via an email from the White House. During his tenure, Trump had initially picked Chopra as a Democratic member of the Federal Trade Commission.
Chopra was then selected to lead the CFPB, an agency he had helped launch following the 2008-09 financial crisis. Sen. Elizabeth Warren, one of President Trump’s frequent critics, said that under Chopra’s leadership, the CFPB held “Wall Street accountable for cheating hard-working families.”
Under the law, Chopra was to serve a five-year term, which would have allowed him to continue as the CFPB director.
However, he publicly stated that he would leave his post if the new president requested it. Consumer Reports praised Chopra’s work at the CFPB. Delicia Hand, Senior Director at Consumer Reports, said Chopra “leaves behind an impressive track record of accomplishments for working families.”
The Consumer Financial Protection Bureau (CFPB) staff was instructed by email to cease much of its work.
Scott Bessent, a wealthy Wall Street investor, has been appointed as the acting director of the CFPB, replacing Rohit Chopra.
Trump dismisses CFPB director Chopra
Bessent sent an internal email instructing staff members to discontinue issuing or approving proposed or final rules or guidance immediately.
The email also halted the effective dates of all final rules issued but not yet implemented. Bessent expressed his excitement about leading the CFPB. “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.
However, the decision has led to significant backlash. Sen. Elizabeth Warren, D-Mass., who played a crucial role in the CFPB’s formation, criticized Bessent’s directive. “Shutting down CFPB enforcement actions that are poised to deliver money into the pockets of working people is at odds with President Trump’s claim that he wants to lower costs for families,” Warren said.
Chopra had led the bureau since 2021 and was known for taking on big banks. Under his leadership, the CFPB issued several regulations, including limiting overdraft fees, capping credit card late fees, and banning medical debt from appearing on credit reports. The Consumer Bankers Association, representing retail banks, welcomed Bessent’s appointment and suggested he should rescind specific rules established during Chopra’s tenure.
Conversely, consumer advocates have denounced Bessent’s appointment. The CFPB is an independent bureau within the Federal Reserve System, funded outside of the congressional appropriations process, with its funding coming from the Federal Reserve. The bureau was created in 2010 following the 2008 financial crisis to protect consumers from financial institution overreach and to help prevent another crisis.