Director Chopra Still Leading the CFPB  

As Donald Trump begins his second term, significant leadership changes have been made across federal agencies. However, to the surprise of many, Rohit Chopra remains the Director of the Consumer Financial Protection Bureau (CFPB) at the end of the first week. 

Director Chopra’s Role at the CFPB 

Director Chopra has been serving as CFPB Director since October 2021, appointed by President Biden for a five-year term that ends in October 2026. While the Supreme Court’s 2020 decision in Seila Law LLC v. CFPB gives the president authority to remove the CFPB Director at will, President Trump has not taken action yet.  Director Chopra was quoted in a Politico article stating: “I am ready to hand off the baton if they have a runner ready, but until that time, we are dealing with a lot of work at the Bureau.”  

One of the most recent names floated as a possible replacement for Chopra is Melissa Holyoak a Republican member of the Federal Trade Commission (FTC) who’s term at the FTC ends on September 25, 2025.  

There are a number of possible reasons that a new CFPB Director has not been named including:  

  • The President plans to use a recess appointment for someone that would face challenges with a Senate confirmation 
  • Candidates have been offered but turned down the position 
  • The Administration has yet to identify a suitable replacement 
  • Chopra will be allowed to finish out his term  

Regardless of which scenario plays out, credit unions can expect significant changes in the way the CFPB operates based on the Executive Orders that limit the CFPB’s authority. Some examples of how the CFPB may operate differently under this Administration can be seen in recent Bureau activity.  For example: 

  • Rather than enforcement action with a monetary penalty the Bureau settled a dispute with Argus Information and Advisory Services, banning the company from CFPB contracts for five years. 
  • Rather than issuing new rules or requests for information the Bureau is issuing reports. 
  • A report revealing increased auto repossessions, surpassing pre-pandemic levels, linked here. 
  • A report on Cash-Out Refinances and Paydown Behavior of Non-mortgage Debt Balances, linked here 

Looking Ahead 

We will continue to monitor these developments and keep you informed about leadership changes at the CFPB.  

Posted in Advocacy on the Move, Regulatory Advocacy.