CR highlights the CFPB’s accomplishments and the importance of maintaining a tough financial watchdog for consumers
WASHINGTON, D.C. – Consumer Financial Protection Bureau director Rohit Chopra announced today that he has been fired from the Bureau as the Trump Administration prepares to appoint new leadership. The nation’s biggest banks and other financial industry and congressional opponents of the CFPB have been pushing for Chopra’s firing in recent months.
Chopra leaves behind an impressive track record of accomplishments for working families, illustrating the critical role the Bureau can play in making the financial marketplace fairer for all and the importance of maintaining an effective watchdog for consumers.
“Rohit Chopra has worked tirelessly at the CFPB to make sure that consumers are protected when they take out a loan, make a payment, or open a bank account,” said Delicia Hand, Senior Director, Digital Marketplace, at Consumer Reports. “Under Chopra’s leadership, the Bureau has scored a number of big wins for consumers, securing billions of dollars in relief for those who have been cheated out of their money and establishing critical new rules to ensure they are treated fairly.”
Hand continued, “Chopra is leaving the CFPB at a time when it continues to come under attack by predatory lenders and other industry opponents, threatening its future ability to protect consumers. As financial products and services continue to rapidly evolve, we need to maintain strong oversight by the CFPB to root out discrimination and harmful practices, and to close regulatory gaps that leave consumers vulnerable to fraud and abuse.”
During Chopra’s tenure as director, the CFPB has issued a number of critical new rules to better protect consumers, including rules that limit excessive bank overdraft fees; give consumers greater access and control of their financial data so they can more easily switch banks; provide borrowers the right to dispute charges and get refunds when they take out buy now pay later loans; cap exorbitant credit card late fees; and ban medical debt from appearing on credit reports.
Industry opponents have sued to stop the CFPB’s limits on overdraft and credit card late fees from going into effect. Congressional opponents of the CFPB are expected to try to repeal the new medical debt and overdraft rules through the Congressional Review Act.
Since its founding, the CFPB has helped tens of millions of consumers resolve their complaints with financial firms and secured more than $21 billion in relief for an estimated 205 million consumers who were treated unfairly. Some notable enforcement actions by the CFPB under Chopra against financial firms that violated the law include:
- Fining U.S. Bank $37.5 million for illegally accessing customers’ credit reports and opening checking and savings accounts without customers’ permission.
- Penalizing Wells Fargo $3.7 billion for widespread mismanagement and illegal activities involving auto loans, mortgages, and deposit accounts.
- Required Regents Bank to pay $191 million, including $141 million to customers harmed by its illegal surprise overdraft fees.
- Secured $22 million in fines, direct compensation for customers, and loan subsidies from Trident mortgage company for digital redlining in the Philadelphia area.
- Most recently, the CFPB order the operator of Cash App to pay $175 million, including up to $120 million in redress to consumers, and adopt a number of measures to improve the way it treats users when they fall victim to scams.
Media Contact: Michael McCauley, michael.mccauley@consumer.org