Treasury Secretary Scott Bessent acting as head of CFPB.
In a move that was expected, President Trump fired Rohit Chopra, who had led the Consumer Financial Protection Bureau (CFPB) since 2021. On January 31, 2025, President Trump designated Secretary of the Treasury Scott Bessent as Acting Director of the CFPB according to Bloomberg. Trump had named Chopra as the Democratic member of the Federal Trade Commission during his first term in office.
The CFPB Director position that former president Joe Biden tapped Chopra for in 2021 has a five-year term, but in 2020 the Supreme Court ruled that the president can fire the director at will. During his term, Chopra was well known for his stance on many financial issues such as overdraft penalties and medical debt reporting, which were viewed by many as regulatory overreach. The CFPB continued their direction after President Trump was set to take office, including the Final Rule to remove medical bills from credit reports that was released in January 2025.
The CFPB is an independent bureau that exists within the Federal Reserve system. It receives its funding from the Federal Reserve, outside of the congressional appropriations process, which has been a point of legal contention for organizations in the banking industry and groups in the bad debt arena such as ACA International. It was created in 2010 by the Dodd-Frank Wall Street Reform and Consumer Protection Act, legislation that was passed in the wake of the 2008 financial crisis in an attempt to prevent another crisis.
As of early February 2025, there has not been anyone named as a full-time replacement for the Director position. There has been some speculation that they may try to change the structure of the CFPB altogether. Americollect will continue to monitor the situation as a permanent replacement is named.
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