PALM BEACH, Fla. (AP) – President Donald Trump has terminated Rohit Chopra, the director of the Consumer Financial Protection Bureau (CFPB), continuing his purge of Biden administration appointees. Chopra was notable as one of the few remaining regulators from the prior Democratic administration who maintained his position since Trump’s inauguration on January 20. During his time at the CFPB, he implemented significant reforms, including the removal of medical debt from credit reports and limitations on overdraft penalties, aiming to create a fairer and more competitive financial system benefitting consumers.
However, Chopra faced criticism from many in the financial sector, who deemed his initiatives as regulatory overreach. In a social media post on Saturday, he expressed gratitude to those who contributed their ideas and experiences to the agency, stating that they played a vital role in holding powerful corporations and their executives accountable for legal violations.
Notably, Chopra was initially appointed by Trump during his first term as a Democratic member of the Federal Trade Commission. In his farewell letter, he highlighted the CFPB's readiness to collaborate with the Trump administration, mentioning that the agency had developed regulations to prevent foreign nations like Russia and China from using data brokers to surveil American citizens. He also noted the agency's efforts to ensure individuals would not lose access to banking services for exercising their constitutional rights, such as free speech and religious expression. Additionally, Chopra referenced the CFPB’s analysis of Trump’s proposal to impose caps on credit card interest rates.
Chopra was informed of his termination via email, as noted by a source familiar with the situation who requested anonymity. Although he was appointed for a five-year term and could have remained in his role, he had stated publicly that he would resign if requested by the new president.
The tensions between Trump's commitment to reducing business regulations and his populist appeal to voters often intertwined. After the Associated Press reported on January 22 that Chopra remained in his role following Trump's inauguration, financial sector critics quickly urged the president to remove him. Weston Loyd, press secretary at the Consumer Bankers Association, commented that Chopra’s continued presence posed challenges for the administration striving to reverse what they labeled as a politically motivated, government price-setting agenda.
Chopra is also known for his affiliations with Senator Elizabeth Warren, a frequent target of Trump’s criticism. Warren stated that if Trump and the Republicans intended to placate Wall Street billionaires at the expense of the CFPB, they would face significant resistance. She praised the bureau under Chopra for maintaining accountability within Wall Street.
U.S. Representative Maxine Waters, the leading Democrat on the House Financial Services Committee, similarly expressed that Chopra's dismissal represents the end of a significant era of consumer protection and indicates a potential strategy to dismantle the agency. The CFPB was established following the 2008 financial crisis, with a mandate to regulate various consumer finance areas, including mortgages and car loans. Historically, the bureau has faced opposition from Republican lawmakers and their financial supporters.
Last year, the Supreme Court dismissed a challenge that could have jeopardized the CFPB’s existence, ruling that its funding structure does not violate the Constitution. Unlike most federal agencies, the CFPB does not depend on Congress for its budget, as it receives direct funding from the Federal Reserve.
In summary, Chopra’s exit marks a significant shift in the leadership of the CFPB, as Trump continues to reshape the agency’s impact on consumer financial regulations established during the Obama administration.
