President Donald Trump has dismissed Consumer Financial Protection Bureau (CFPB) director Rohit Chopra.
Chopra, who was appointed in 2021 by former President Joe Biden, will also no longer serve as a board member of the Federal Deposit Insurance Corporation. During his tenure, the CFPB implemented rules to limit bank overdraft and credit card late fees, introduced regulations for open banking and Buy Now Pay Later (BNPL) services, and increased supervision of Big Tech’s involvement in payments.
The bureau adopted a robust enforcement strategy, suing major banks over fraud related to the Zelle peer-to-peer payments app, and recently imposing significant fines on companies like Block and Wise. Chopra’s leadership faced criticism from various sectors, with Richard Hunt, executive chairman of the Electronic Payments Coalition, describing his time in office as “marked by witch-hunts and political weaponization.”
Senate Banking Committee Chairman Tim Scott praised Chopra’s removal as “great news,” while the committee’s ranking member, Elizabeth Warren, defended Chopra, stating that under his leadership, the CFPB was holding Wall Street accountable.
In his departure letter to Trump, Chopra expressed confidence in the CFPB’s ability to collaborate with the new administration, highlighting his support for Trump’s proposal to cap credit card interest rates.
Treasury Secretary Scott Bessent has been appointed as the acting director of the CFPB. According to Bloomberg Law, Bessent instructed CFPB staff via email to halt all rulemaking, communications, litigation, and other activities unless authorized by him or required by law.