Chopra departs from the Consumer Financial Protection Bureau in a planned exit
The Consumer Financial Protection Bureau (CFPB) is currently operating under interim leadership, with Acting Director Russell Vought at the helm, following the departure of Rohit Chopra in January 2025. Chopra's tenure at the CFPB was marked by aggressive enforcement and a focus on consumer protection, as evidenced by the record $3.7 billion settlement with Wells Fargo over the fake-accounts scandal.
However, under Vought's leadership, the CFPB has seen a significant scaling back of its enforcement and regulatory activities. The agency has reversed many prior initiatives, dismissed enforcement actions, withdrawn guidance, and rescinded some rules. This reflects a broader rollback of the CFPB’s regulatory activity compared to previous years.
One of the major policy shifts under Vought's leadership is the reconsideration of the Section 1033 open banking rule on consumer data rights. The CFPB aims to revise this rule with new rulemaking that aligns with the administration's priorities and addresses legal challenges. Additionally, the CFPB has withdrawn its Medical Debt Collection Advisory Opinion, which was challenged as overreach, suggesting a pullback from aggressive enforcement on medical debt collection.
Despite the reduced activity, the CFPB continues to handle consumer complaints actively. Complaint volume has remained stable or increased in 2025, particularly involving credit reporting issues. The complaint database remains operational and responsive, despite prior technical disruptions.
The CFPB recently completed a monetary settlement linked to a 2021 lawsuit under the Military Lending Act, marking the first enforcement action under the new leadership but appearing limited compared to past activity. There is no current nominee for a permanent CFPB director from the Trump administration, and Acting Director Vought may remain in place for the foreseeable future.
Chopra's departure from the CFPB was widely expected, with many predicting it would happen sooner. His departure provoked a warning from Sen. Elizabeth Warren, who stated that Trump and Republicans will have a fight on their hands if they decide to dismantle the CFPB. The American Bankers Association expressed support for the CFPB changeover and urged Bessent to reverse the damage caused by Chopra's regulatory actions. Rep. Maxine Waters called Chopra's departure the end of an era of strong consumer protection and the beginning of a plan to end the CFPB.
Scott Bessent, who was designated as the interim chief of the CFPB by Trump, has expressed a desire to replace Chopra. Bessent instructed CFPB staff to halt the issuance of final rules, settlement of enforcement actions, and participation in litigation proceedings. However, only congressionally mandated regulations can move forward without Bessent's approval.
In summary, the CFPB under the Trump administration is functioning but with diminished enforcement and regulatory agenda, emphasizing cautious, scaled-back operations and reconsidering key consumer protection rules established previously. Leadership is interim under Russell Vought, not Scott Bessent, based on recent authoritative reports.
- The shift in leadership at the Consumer Financial Protection Bureau (CFPB), with Acting Director Russell Vought now in charge, has brought about a change in the agency's focus, with a significant scaling back of its enforcement and regulatory activities in business and finance, particularly in areas like open banking rules and medical debt collection.
- The current state of the CFPB, under interim leadership and with a more cautious approach, has raised concerns in the political sphere, as seen in statements from senators like Elizabeth Warren, who have warned against any dismantling of the bureau and its crucial role in consumer protection.
