President Trump Fires CFPB Director Rohit Chopra

In a significant shake-up of financial regulatory leadership, President Donald Trump has dismissed Rohit Chopra from his role as director of the Consumer Financial Protection Bureau (CFPB), according to CNN. Chopra, who has faced criticism from Republican lawmakers for implementing regulations that favored consumers over financial institutions, was informed of his termination via email from the White House on Saturday morning, per CNN sources.

Chopra acknowledged his departure in a post on X, where he stated, “This letter confirms that my term as CFPB Director has concluded. I know the CFPB is ready to work with you and the next confirmed Director, and we have a great deal of energy to ensure continued success.” The CFPB declined to comment on the matter.

A White House official, speaking to CNN, emphasized the president’s authority in making such decisions, stating, “It’s the executive’s decision and prerogative to see who they want in that role.”

Chopra’s Tenure and Regulatory Impact

Appointed by former President Joe Biden in 2021, Chopra had led the CFPB through several high-profile regulatory actions. He championed rules aimed at reducing overdraft and late fees imposed by banks and credit card companies. However, his proposed cap of $8 on credit card late fees was overturned by a federal judge. A separate rule capping overdraft fees at $5—down from the typical $35—was finalized late last year but is expected to face legal challenges.

Chopra also spearheaded a regulation that enhances consumer access to personal financial data, making it easier to switch banks. Additionally, just before Trump assumed office, the CFPB finalized a rule that removes approximately $49 billion in medical bills from credit reports. “People who get sick shouldn’t have their financial future upended,” Chopra had stated on January 7.

Related: Tech Groups Sue CFPB Over New Rule on Digital Wallet Oversight

Political and Industry Reactions

Chopra’s tenure was marked by aggressive oversight of major financial institutions, including Bank of America and JPMorgan Chase, which faced lawsuits from the CFPB. His regulatory stance led to strong opposition from business leaders and Republican legislators, some of whom had urged Trump to remove him. The 2020 Supreme Court ruling that granted presidents the authority to fire CFPB directors made this dismissal possible.

Sen. Elizabeth Warren, a longtime advocate of financial regulation and a key architect of the CFPB, commended Chopra’s efforts in holding financial institutions accountable. “Holding Wall Street accountable for cheating hard-working families,” she said in a statement Saturday.

Despite their policy disagreements with Trump, Warren and other progressive lawmakers, including Sen. Bernie Sanders, have expressed support for the president’s proposal to cap credit card interest rates at 10%, less than half of current rates, per Federal Reserve data. Warren emphasized the importance of a strong CFPB in achieving this goal, warning that if Trump and congressional Republicans attempt to weaken the agency, they will face political resistance.

The Future of the CFPB

The CFPB, established in the wake of the 2008 financial crisis through the Dodd-Frank Act, has played a crucial role in consumer financial protections. With Chopra’s departure, the direction of the agency is expected to shift under new leadership aligned with Trump’s regulatory priorities. The administration has yet to announce a successor, but financial industry leaders and Republican lawmakers are likely to push for a more business-friendly director.

Source: CNN