WASHINGTON—Rohit Chopra has stepped down as director of the CFPB.
Rohit Chopra
Chopra, who led the agency since 2021, made the announcement on his X page, linking to his resignation letter to President Trump. Washington insiders stated they are not certain whether Chopra was fired or he quit.
“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,” Chopra stated in his letter.
Washington credit union advocate John McKechnie said a change in leadership at the CFPB was a certainty the minute President Trump took the oath of office.
“The only surprise was how long it took,” McKechnie said. “Even some of the Bureau’s most ardent supporters on the Democratic side of the aisle will privately acknowledge it has been polarizing. Maybe a new acting director can turn the heat down. An emphasis on protecting consumers, instead of trying to make decisions for them, would be welcome.”
John McKechnie
DCUC Chief Advocacy Officer Jason Stverak told CUToday.info the trade association hopes President trump “uses this opportunity to appoint a new director that will return the agency to its mission and stop efforts to put onerous regulations on credit unions—which only makes it more difficult to serve our members, rather than protect consumers. We look forward to working with the new director in this effort.”
America's Credit Unions President/CEO Jim Nussle, in a released statement, said, "Credit unions were the original consumer protectors, stepping in when people were abandoned or abused by other financial institutions. America’s Credit Unions advocates fiercely to ensure credit unions can continue this mission—urging regulators to recognize the unique structure and immense value of our industry. While we did not always agree with Director Chopra’s policies or approach to regulation, we thank him for his service and willingness to meet with credit unions. We look forward to working with the next CFPB director to pursue meaningful regulatory reforms that allow credit unions and their more than 140 million members to thrive while holding bad actors accountable."
Leading up to Chopra’s decision, Washington analysts debated whether the choice to head the CFPB would be newly confirmed Treasury Secretary Scott Bessent or Russell Vought, President Trump’s pick to head the Office of Management and Budget. Thomas Pahl, retired CFPB deputy director, was also suggested as a possible replacement for Chopra.
Dennis Dollar
Former NCUA Chairman Dennis Dollar reminded that if Vought or Bessent are chosen by the President, the decision would be similar to one Trump made during his first term. (See new story on Bessent's selection as acting CFPB head.)
“It’s not unprecedented to put another officeholder in an acting directorship,” said the Dollar Associates principal partner. “In his first term, President Trump put in the head of the Office of Management and Budget, Mick Mulvaney, as acting head of the CFPB until he nominated and got Kathy Kraninger confirmed months later.”
Brandy Bruyere, partner at Honigman LLP, told CUToday.info if either Bessent or Vought are chosen it will lead to less regulation, and enforcement will slow to focus more on clear statutory violations with penalties to address restitution to consumers rather than punitive damages.
Dissolve CFPB
Michael Moebs, economist and chair of of Moebs $ervices, believes if Bessent is selected, the move allows the Trump Administration to begin dissolving the CFPB.
“This would buy Trump time to dismantle or restructure the CFPB. However, Russ Vought is an absolute bulldog. He was director of OMB during Trump’s first term. Vought is sharp, determined, hates bureaucrats and is a true believer in draining the swamp. He would completely gut the CFPB," Moebs said.