The president of the United States, Donald Trump, dismissed the director of the US Consumer Financial Protection Department (CFPB on the acronym), Rohit Chopra.
Chopra received an email from the White House on Saturday morning (1st) informing him of the dismissal, a source told the matter to the matter CNN. The former director is critical of republicans for their measures to control companiesannounced your output in post on X.
“This letter confirms the conclusion of my term as director of CFPB. I know the department is ready to work with you and the next confirmed director, and we have a lot of energy to ensure continuous success, ”wrote Chopra.
“It is the prerogative and decision of the executive to define who wants in this role,” an employee of the White House told CNN. The US Consumer Financial Protection Department declined to comment on the announcement.
Os main banksincluding capital One, Bank of America and JPMorgan Chase, are among companies that face legal proceedings in the department.
These groups, alongside technology industry leaders, encouraged Trump To remove drain from its function – which was possible thanks to a decision of the US Supreme Court of 2020 that allowed presidents to dismiss directors from the folder.
Chopra was appointed in 2021 by former President Joe Biden to serve as director of the department that regulates financial agencies. The head of the service, which according to the law should comply with a five -year term, also acts as a member of the US Federal Deposit Insurance Council (FDIC), voting for fundamental bank regulations. Chopra will also cease to perform this function.
During his term at CFPB, Chopra headed a controversial regulation that limits overdraft fees that banks can chargeas well as the late credit card companies can charge customers.
The rule that intended to limit the delay rates of credit cards to $ 8 was eventually annulled by a federal judge. The CFPB rule on overdraft rates, which would limit them to $ 5 – a significant economy compared to $ 35 that are usually charged to customers – was defined at the end of last year, but it is likely that the measure also is likely to face legal contests.
Under its leadership, CFPB also approved Standards to facilitate access to bank dataallowing customers to exchange a bank more easily.
In addition, shortly before Trump’s inauguration, the agency removed $ 49 billion in medical debt from credit reports.
“People who get sick should not have their financial future destroyed,” Chopra said on January 7.
CFPB Evolution
The CFPB was created after the 2008 financial crisis by Dodd-Fank law, designed by Democratic Senator Elizabeth Warren, who had defended the agency since 2007 when he was still a teacher at Harvard.
Warren praised Chopra for “responsible Wall Street for deceiving working families.” Despite differences with Trump, she and other progressives, such as Bernie Sanders, showed support for the president’s promise to impose a 10% temporary ceiling for credit card interest, less than half of current rates, according to Fed Fed (Fed data. ).
For this measure to materialize, Warren said Trump “needs a strong CFPB and a strong director.”
Senator warned that if Trump and Republicans give in to Wall Street pressures to weaken the agency, they will face resistance in Congress.
