President Donald Trump has removed Rohit Chopra from his position as director of the Consumer Financial Protection Bureau (CFPB), according to a source familiar with the matter. Chopra was informed of his dismissal via an email from the White House on Saturday morning.
Chopra, who has been a strong advocate for consumer protections and financial regulations, confirmed his departure in a post on X. “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,” he wrote.
The CFPB declined to comment, but a White House official stated, “It’s the executive’s decision and prerogative to see who they want in that role.”
Chopra’s Tenure and Key Policies
Appointed in 2021 by former President Joe Biden, Chopra led initiatives aimed at curbing excessive fees charged by financial institutions. His policies included a proposed $8 cap on credit card late fees, which was later struck down by a federal judge, and a finalized rule to limit overdraft fees to $5, down from the typical $35. These measures, while popular among consumers, faced strong opposition from major banks and financial institutions.
Chopra also spearheaded a rule to increase accessibility to personal financial data, making it easier for consumers to switch banks. Additionally, before Trump’s inauguration, the CFPB finalized a policy to remove approximately $49 billion in medical debt from credit reports, a move aimed at protecting consumers from financial hardship due to medical expenses.
Political Reactions
The CFPB was established following the 2008 financial crisis as part of the Dodd-Frank Act, championed by Democratic Senator Elizabeth Warren. Warren, a vocal advocate for consumer protections, praised Chopra’s efforts in holding Wall Street accountable.
Despite her opposition to Trump, Warren has expressed support for his campaign pledge to temporarily cap credit card interest rates at 10%, significantly lower than current levels. She warned that any attempt to weaken the CFPB would be met with strong resistance, stating, “If President Trump and Republicans decide to cower to Wall Street billionaires and destroy the agency, they will have a fight on their hands.”
Chopra’s departure leaves uncertainty about the future direction of the CFPB, as financial institutions push for deregulation while consumer advocates call for continued protections.
