The Trump administration has removed Rohit Chopra from his position as director of the Consumer Financial Protection Bureau (CFPB), a move that had been widely anticipated. President Donald Trump is expected to appoint a new director to lead the agency, which has frequently been a target of Republican criticism.
Chopra was appointed to the role by President Joe Biden in 2021 for a five-year term. However, a 2020 Supreme Court ruling granted the president the authority to dismiss the CFPB director at will, paving the way for his removal.
Chopra Reflects on CFPB’s Role in Resignation Letter
Following his dismissal, Chopra shared a resignation letter on X (formerly Twitter), emphasizing the significance of regulatory agencies like the CFPB in safeguarding consumers against corporate influence.
“Watchdog agencies such as the CFPB work to enforce laws to check the enormous influence that powerful firms have over our daily lives,” he wrote.
Rohit Chopra Tenure
During his time at the CFPB, Chopra took a firm stance against major financial institutions, particularly targeting big banks. In December, the bureau filed a lawsuit against the operator of the digital payments platform Zelle, along with major U.S. banks—Bank of America, JPMorgan Chase, and Wells Fargo—accusing them of failing to adequately protect consumers from rampant fraud.
The CFPB operates as an independent bureau within the Federal Reserve System and is primarily funded through transfers from the Fed’s combined earnings. It was established in 2010 under the Dodd-Frank Wall Street Reform and Consumer Protection Act, legislation designed to prevent financial crises following the 2008 economic collapse.
Consumer Advocacy Groups Applaud Rohit Chopra
News of Chopra’s removal prompted praise from consumer advocacy organizations, which commended his leadership at the CFPB.
Under Chopra, “the CFPB has fought against junk fees, repeat offenders, big tech evasions, and corporate deception. It has championed competition, transparency, accountability, and consumer financial health,” said Adam Rust, director of financial services for the Consumer Federation of America, in a statement.
Banking Industry Seeks CFPB Reforms
Despite accepting the agency’s continued existence, the banking industry has expressed a desire for significant reforms within the CFPB.
“The incoming administration has a unique and important opportunity to institute meaningful reforms to the CFPB, in both the immediate and long-term, that can help transform the agency into the credible and durable regulator Americans deserve,” the Consumer Bankers Association stated in a January white paper.
Among the immediate reforms suggested by the association were rescinding CFPB’s rules on overdraft fees and credit card late fees.
Republican Lawmakers Criticize CFPB’s Structure
Chopra’s leadership had also drawn criticism from Republican lawmakers. At a December Senate Banking Committee hearing, ranking member Tim Scott (R-S.C.) called for Chopra’s resignation on Trump’s first day in office. He also criticized the CFPB’s continued issuance of rules and reports in the final weeks of the Biden administration.
Scott took issue with the agency’s financial structure, arguing that its funding mechanism bypasses congressional oversight.
“It is unacceptable to have an agency with a budget of almost a billion dollars outside of the appropriations process, and we must find a way to address this issue,” Scott stated in a prepared remark.
Also Read: How Trump’s Tariffs Will Impact U.S. Households: $830 Extra Tax In 2025
