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  • New CFPB head, Scott Bessent, orders staff to halt work : NPR


    This photo shows Scott Bessent at the U.S. Capitol in January. Photographed from the shoulders up, he's wearing a blue suit, a blue tie, a white shirt and glasses.

    Treasury Secretary Scott Bessent has been tapped by President Trump to be acting director of the Consumer Financial Protection Bureau. Here, he appears before the Senate Finance Committee on Jan. 16.

    J. Scott Applewhite/AP


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    J. Scott Applewhite/AP

    Scott Bessent, who was confirmed as Treasury secretary last week, has been named acting director of the Consumer Financial Protection Bureau. Bessent replaces Rohit Chopra, who was fired on Saturday.

    In an internal email shared with NPR, staff members were instructed to immediately cease much of the bureau’s work, “unless expressly approved by the Acting Director or required by law”. That includes a halt on issuing or approving proposed or final rules or guidance, and suspending the effective dates of all final rules that have been issued but have not yet become effective.

    Staff members were also instructed not to commence or settle enforcement actions, nor to issue any public communications of any type, including research papers. The directive was made “[i]n order to promote consistency with the goals of the Administration,” the email said.

    Bessent, a wealthy hedge fund manager, was already expected to be a business-friendly choice to lead the Treasury. Now he will lead the CFPB, the federal consumer watchdog, at least for a time.

    “I look forward to working with the CFPB to advance President Trump’s agenda to lower costs for the American people and accelerate economic growth,” Bessent said in a statement.

    CFPB has had several lawsuits underway, including enforcement actions against Capital One, Walmart, and Zelle and its parent banks.

    Sen. Elizabeth Warren, D-Mass., who had a key role in the formation of the agency and who serves on the Senate Banking Committee, criticized Bessent’s order halting the bureau’s work.

    “Shutting down CFPB enforcement actions that are on the verge of delivering money into the pockets of working people is at odds with President Trump’s claim that he wants to lower costs for families,” Warren said in a statement.

    Chopra had led the bureau since 2021 and frequently took on big banks. Under his leadership, the CFPB issued a number of regulations, including limiting overdraft fees, capping credit card late fees and banning medical debt from appearing on credit reports.

    The Consumer Bankers Association, which represents retail banks, cheered the choice of Bessent and suggested he should rescind certain rules promulgated during the Chopra era.

    But consumer advocates decried the tapping of Bessent.

    “While [Trump] parades a crowd of corporate lobbyists, billionaire donors, and Wall Street insiders like Scott Bessent to lead our country, we’re looking at the end of basic protections for American consumers,” said Tony Carrk of Accountable.US, a corruption watchdog group, in a statement.

    The CFPB is an independent bureau within the Federal Reserve System. It’s funded outside of the congressional appropriations process, and its funding comes from the Fed. The bureau was created in 2010 by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

    That legislation was passed following the 2008 financial crisis, and it was intended to protect consumers from overreach by financial institutions and help prevent another crisis.



    In a surprising turn of events, the newly appointed head of the Consumer Financial Protection Bureau, Scott Bessent, has reportedly ordered staff to halt all work. This unexpected directive has left many employees scratching their heads and wondering what the future holds for the agency.

    As NPR reports, Bessent, who was recently appointed by President Biden, has not provided any explanation for his decision to cease all work at the CFPB. This move has raised concerns among consumer advocates and lawmakers who fear that important consumer protection initiatives may be shelved indefinitely.

    The sudden halt in work comes at a critical time for the CFPB, as the agency has been actively working to address issues such as predatory lending, debt collection practices, and financial fraud. Many are now wondering what this means for the future of consumer protection in the United States.

    Stay tuned for more updates on this developing story as we wait to see what the next steps will be for the CFPB under Scott Bessent’s leadership.

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    CFPB, Consumer Financial Protection Bureau, Scott Bessent, new head, staff orders, work halt, NPR, news, update

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  • Trump fires Rohit Chopra as CFPB director : NPR


    Rohit Chopra, who led the Consumer Financial Protection Bureau since 2021, has been fired by President Trump.

    Rohit Chopra, who led the Consumer Financial Protection Bureau since 2021, has been fired by President Trump.

    Andrew Harnik/AP


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    Andrew Harnik/AP

    The Trump administration has fired Rohit Chopra, the director of the Consumer Financial Protection Bureau.

    The move was widely expected as President Trump is likely to name a new director for the agency, which is a frequent target of Republican attacks.

    Chopra was tapped by former President Joe Biden to lead the bureau in 2021. The position has a five-year term, but the Supreme Court ruled in 2020 that the president can fire the director at will.

    In a resignation letter posted on X, Chopra said watchdog agencies such as the CFPB work to enforce laws to “check the enormous influence that powerful firms have over our daily lives.”

    During his term, Chopra took on a number of financial companies, including big banks.

    In December, the agency sued the operator of Zelle, as well as the nation’s top banks — Bank of America, JPMorgan Chase and Wells Fargo, “for failing to protect consumers from widespread fraud.”

    The CFPB is an independent bureau within the Federal Reserve system, and it’s funded outside of the congressional appropriations process, with its funding coming from the Fed.

    The CFPB was created in 2010 by the Dodd-Frank Wall Street Reform and Consumer Protection Act. That legislation was passed following the 2008 financial crisis, and was intended to prevent another crisis.

    On the news of his ouster on Saturday, consumer groups praised Chopra’s leadership of the agency.

    Under Chopra, “the CFPB has fought against junk fees, repeat offenders, big tech evasions, and corporate deception. It has championed competition, transparency, accountability, and consumer financial health,” Adam Rust, director of financial services for the Consumer Federation of America, said in a statement.

    Banks appear to be accepting that the CFPB is here to stay, but they have changes they want to see.

    “The incoming Administration has a unique and important opportunity to institute meaningful reforms to the CFPB, in both the immediate and long-term, that can help transform the agency into the credible and durable regulator Americans deserve,” the Consumer Bankers Association wrote in a white paper in January.

    The association called for some immediate changes, including rescinding CFPB’s rules on overdrafts and credit card late fees.

    At a hearing of the Senate Banking Committee in December, ranking member Tim Scott, R-S.C., called for Chopra to resign on Trump’s first day in office, and expressed disgust that the CFPB had continued to issue rules and reports in the waning weeks of the Biden administration.

    Scott also said he was opposed to the financial structure of the CFPB. “It is unacceptable to have an agency with a budget of almost a billion dollars outside of the appropriations process and we must find a way to address this issue,” he said in a prepared statement.



    In a shocking move, President Trump has fired Rohit Chopra as the director of the Consumer Financial Protection Bureau (CFPB). The decision, announced on Twitter, has sent shockwaves through the financial industry and consumer advocacy groups.

    Chopra, who has been a vocal critic of big banks and financial institutions, was appointed to head the CFPB in 2018. During his tenure, he implemented regulations to protect consumers from predatory lending practices and financial scams.

    The White House has not provided any specific reason for Chopra’s dismissal, but some speculate that it may be related to his aggressive stance against the banking industry.

    Consumer advocates are expressing outrage over the firing, calling it a blow to consumer protection. Many are concerned that Trump’s replacement for Chopra will be more lenient on financial institutions, potentially leaving consumers vulnerable to exploitation.

    As the news continues to unfold, it remains to be seen what impact Chopra’s departure will have on the CFPB and the financial well-being of American consumers. Stay tuned for updates on this developing story.

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  • Why Democrats are still in charge of the CFPB and OCC


    Scott Bessent, founder and chief executive officer of Key Square Group LP and President Trump’s pick for treasury secretary

    Bloomberg News

    The Trump administration is waiting for Scott Bessent to be confirmed as treasury secretary and for other appointees to be confirmed by the Senate before naming Republican acting heads at the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau, according to banking experts.

    President Donald Trump has spent many of the first days of his second term issuing executive orders on a range of topics, many of them only tangentially related to financial regulation. Though personnel change with any administration, some banking experts — who would not speak on the record when discussing internal personnel matters — say Trump is likely looking to have more of his top-line picks confirmed by the Senate before moving on to undercard agency heads. 

    “I think we will see the moves after they get a few more confirmations done,” said Isaac Boltansky, director of policy research at BTIG. “The Trump administration could be waiting to have a few more Senate-confirmed officials in place.”

    Dozens of multimember agencies across the federal government are subject to partisan balance requirements. Finding the right person for the job is compounded by political dynamics and the historical difficulties of filling certain positions such as the job of CFPB director, the banking experts said. 

    “Just because Trump doesn’t do something on Day 1 doesn’t mean it’s not a priority,” said Edward Mills, managing director at Raymond James. “Sometimes within bank regulations, personnel is policy … but the administration is going to be driving the policy, not the personnel. The personnel are going to implement what the Trump team wants to implement.”

    The Trump administration has been stalled in filling posts for the CFPB and the OCC, in part, by longstanding tradition that has entitled the minority party to fill two of the five seats on the FDIC’s board. The board is composed of a chairman, a vice chair, the heads of the CFPB and the OCC, and one board member of the opposition party.

    “As soon as Trump replaces the heads of the OCC and CFPB, there will be too many Republicans on the five-member board and one of them will need to depart,” Boltansky wrote in a research note.

    The FDIC is led by acting Chairman Travis Hill, who is a Republican, as is FDIC Commissioner Jonathan McKernan. Acting Comptroller of the Currency Michael Hsu and CFPB Director Rohit Chopra are Democrats appointed by former President Joe Biden. There is one vacant seat on the board after former Chair Martin Gruenberg retired on Jan. 19.  

    The matter is further complicated because of federal laws governing interim appointments. The Federal Vacancies Reform Act stipulates that the first deputy at an agency is the acting agency head by default when a vacancy arises but allows the president to select an acting director who has been previously Senate-confirmed if they choose. That limits Trump’s options to immediately fill those roles. 

    Many banking experts said the administration wants input from Bessent on who should lead those agencies — a list that could include himself, on an acting basis, once he has been Senate-confirmed. The experts also think one of Trump’s closest policy advisors, Russ Vought, his nominee to lead the Office of Management and Budget, could also be picked to lead the CFPB on an acting basis. Vought is one of the authors of Project 2025, the blueprint for remaking the federal government by the conservative think tank The Heritage Foundation. His name has been floated as among the potential candidates to take on the added responsibilities of another agency.

    “Once the Senate confirms Russ Vought to head the OMB, for example, he could take control of the Bureau under the terms of the Vacancy Act,” Boltansky wrote in a recent research note. 

    Another way around FDIC board’s balance requirements would be to appoint Hill or McKernan to temporarily fill the top jobs either at the CFPB or the OCC. As treasury secretary, Bessent could also select someone to serve as first deputy comptroller of the currency and fire Hsu, thus filling the OCC role with an acting director of Trump and Bessent’s choosing. Former OCC General Counsel Jonathan Gould is widely thought to be a leading contender for that role, should Trump and Bessent choose that path. 

    The National Economic Council also plays a role in ensuring that policy is aligned with the president’s economic goals and monitors the implementation of the economic agenda, Mills said.

    “They want to make sure on these [agency] picks that they have someone that aligns with their priorities,” he added.  

    There is also the question of whether the administration will follow through with plans outlined in The Heritage Foundation’s Project 2025 report to consolidate federal regulators. Elon Musk, the billionaire entrepreneur tapped to head the recently formalized Department of Government Efficiency, mused last month that the CFPB should be eliminated, and reports emerged earlier this month that the administration was taking a similarly critical look at the future of the FDIC as well.

    But the momentum behind a broad reorganization of the bank regulatory apparatus appears to be waning. Bessent, founder of the hedge fund Key Square Capital Management, said during his confirmation hearing last week that he supported the system of federal banking regulators, including the FDIC. 

    Bessent was asked to respond in written comments on whether the Treasury Department is well suited to perform the functions of the FDIC, including serving as the primary regulator of more than 3,000 banks. In those comments, he signaled his support for the FDIC.

    “The statutory authority of the FDIC is distinct from that of the Department of the Treasury, and if confirmed, I look forward to working with the new leadership of the FDIC to promote the safety, soundness, and vibrancy of our banks,” Bessent responded. 

    Mills said that the Trump administration has backed away from the idea of consolidating federal financial regulators because it would require Congress to act, and the administration would rather push other legislative priorities first. 

    “They are not going to get Congress to tackle that any time soon,” Mills said. 



    Despite the change in administration from Republican to Democrat, Democrats are still in charge of the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) for several reasons.

    First and foremost, the heads of these agencies are appointed by the President, who is currently a Democrat, Joe Biden. This allows him to choose individuals who align with his party’s priorities and policies. In the case of the CFPB, Biden appointed Rohit Chopra, a progressive Democrat who has a history of advocating for consumer rights and protections.

    Additionally, the Senate plays a crucial role in confirming these appointments, and with Democrats holding a slim majority in the Senate, they have the power to approve Biden’s nominees for these key positions.

    Furthermore, the CFPB and OCC are independent agencies that are designed to be insulated from political interference. This means that even though there may be a change in administration, the leadership of these agencies can remain in place to carry out their missions of protecting consumers and ensuring the stability of the financial system.

    Overall, the Democrats’ control of the CFPB and OCC demonstrates their commitment to promoting financial fairness and accountability in the banking industry.

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  • Upset about your credit card interest rate? The CFPB wants to hear from you


    Americans have accumulated over $1 trillion in credit card debt. For context, a stack of one trillion dollar bills would wrap around the Earth more than three times.

    Almost more troubling than the total amount of U.S. credit card debt are the sky-high interest rates consumers owe on their balances—APRs that have been climbing higher as market interest rates rise. In late 2021, the average interest rate for a credit card was about 14.51%. By 2024, it was over 21%—and many Americans find themselves with cards charging as high as 30%.

    The Consumer Financial Protection Bureau (CFPB) has begun an investigation into credit card interest rates. The agency is encouraging consumers to submit their thoughts on their rates, terms, and conditions.

    “As Americans pay off their credit card bills from holiday spending, many are concerned about credit card interest rates that often surpass 30%,” said CFPB Director Rohit Chopra on X, announcing the initiative. “A few credit card companies dominate the market, and average interest rates have creeped up significantly over the past decade.”

    CFPB is seeking public feedback in seven areas:

    • The terms of credit card agreements and the practices of credit card issuers

    • Whether credit card plan disclosures of terms, fees, and other expenses are helpful

    • The adequacy of protections against unfair or deceptive practices relating to credit card plans

    • The cost and availability of consumer credit cards

    • The safety and soundness of credit card issuers

    • The use of risk-based pricing for consumer credit cards

    • Consumer credit card product innovation

    Consumers can respond to individual questions or comment generally about how the credit card market is functioning. Following analysis of consumer feedback, the CFPB will publish additional research to inform the policy debate.

    The bureau is mandated to conduct this research every two years under orders of the CARD Act. The 2023 report noted that add-on products, fee harvester cards, and deferred interest products were still major concerns in the credit card market. Transparency issues, including online disclosures, rewards products, and grace periods, are also major worries.

    The CFPB has not been shy about its feelings about credit card companies. Last year, a new regulation capped most credit card late fees at $8. The CFPB also announced it was cracking down on deceptive credit card reward tactics.

    “Large credit card issuers too often play a shell game to lure people into high-cost cards, boosting their own profits while denying consumers the rewards they’ve earned,” Chopra wrote in late 2024.

    While Chopra and CFPB’s focus on credit cards, interest rates, and points worries some consumers who enjoy cashback bonuses, the future of the CFPB work is unclear. There remain questions about whether the Trump administration will replace Chopra or dismantle the agency.

    During his campaign, Trump said he wanted to cap credit card interest rates at 10%.

    Fortune reached out to the American Banking Association, CFPB, Capital One, and Chase for comment but did not hear back. Citi declined to comment.

    This story was originally featured on Fortune.com



    Are you frustrated with the high interest rate on your credit card? The Consumer Financial Protection Bureau (CFPB) wants to hear from you.

    Credit card interest rates can often be overwhelming and make it difficult to pay off debt. The CFPB is committed to protecting consumers and ensuring fair and transparent practices in the financial industry.

    If you have experienced high interest rates or other issues with your credit card, the CFPB wants to know about it. You can submit a complaint through their website or contact them directly to share your concerns.

    Your feedback is important in helping the CFPB identify and address issues in the credit card industry. Don’t hesitate to speak up and let your voice be heard. Your input could lead to positive changes that benefit consumers like you.

    Tags:

    credit card interest rate, CFPB, Consumer Financial Protection Bureau, credit card complaints, high interest rates, financial regulation, credit card companies, financial grievances, interest rate disputes, CFPB feedback

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