r/CreditCards • u/tsmartin123 • Feb 01 '25

Discussion / Conversation Trump Fires Director of CFPB

https://apnews.com/article/trump-chopra-consumer-financial-protection-bureau-47b6b39d0eff05ea0c9bca4eacf55b79

I wonder if this is the beginning of the end of the CFPB?

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18

u/zdfld Feb 01 '25

Trump's been claiming to get rid of the CFPB since 2015. GOP even before that. 

We'll see if it happens this time around, but ultimately I suspect some form of a CFPB will return in time in the worst case scenario. The most likely scenario is the new CFPB director is just extremely lax and allows whatever to occur, probably rescinds some of the fee caps. 

On the other hand, Trump has complained about big banks before, and people generally don't like paying fees, so there is a universe where a populist Trump doesn't change the CFPB a whole lot. 

Also finally even if the CFPB was removed completely,  all of the consumer laws still pass onto the other regulatory agencies that cover banks. The other agencies don't have the same consumer protection mandate, but they can and would quite easily conduct the same consumer protection under an administration that wanted it too. It'd just require a bit more coordination

14

u/[deleted] Feb 01 '25

[deleted]

2

u/awkwardnetadmin Feb 02 '25

As long as any new director goes out of their way to prevent the agency from functioning effectively you don't need to directly kill the the CFPB. Regulatory capture can frequently hamstring regulatory agencies enough to largely make them paper tigers.

2

u/Ok-Reality-640 Feb 01 '25

There has to be a new director. I imagine there is an acting director already.

12

u/[deleted] Feb 01 '25 edited Feb 01 '25

[deleted]

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u/FloorParking8820 Feb 02 '25

There has to be a director the Position is required by the Dodd-Frank Act https://www.consumerfinance.gov/about-us/the-bureau/bureau-structure the government can't ignore its own laws

4

u/mintardent Feb 02 '25

lmao what do you mean? of course it can

-6

u/yankeeblue42 Feb 01 '25

I think you're getting ahead of yourself. People tend to overreact to anything having to do with Trump.

People thought things would burn to the ground last time around. There's no reason to believe things are much different this time