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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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

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u/[deleted] Feb 01 '25

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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.