
As of February 1, 2025, Rohit Chopra is no longer at the helm of the CFPB. As expected, he was unceremoniously fired by the President. Scott Bessent, Secretary of the Treasury, has been named as the agency’s acting director. So, what does this mean for the ARM industry?
In the short term- not much. In the long term, we’ll have to wait to see how things develop with a cautionary note that it may be a good idea to keep an eye on state legislatures.
The CFPB moves methodically, and it cannot change course overnight. Ousting director Chopra doesn’t erase his legacy or initiatives put in motion during his tenure, regardless of whether they are in effect, pending, or the subject of litigation. The removal of the Director, standing alone, does not provide a reason to set aside operations and compliance strategies already in place or currently in flight.
So, what should ARM industry participants be doing in light of this news?
- Keep an eye on state legislatures. This move was not a surprise. In January 2025, in an apparent effort to cement Director Chopra’s legacy and give a roadmap for the states, the CFPB published a Roadmap for the States and a compendium of Compliance documents. As noted by Troutman Pepper Locke, “The recommendations outlined in the report aim to empower states to take a more aggressive stance on consumer protection.” Those in the ARM industry may want to consider reviewing their personnel, processes, and procedures to ensure they can be nimble, and that they can handle a patchwork of state laws in the not-too-distant future.
- Be on the lookout for key developments with pending litigation and recently enacted rules. As noted in this article about the CFPB’s medical debt rule from Finvi, new CFPB rules may be subject to the Congressional Review Act. As for litigation related to pending rules, time will tell whether the CFPB’s defense strategy will change. In either case, the removal of Director Chopra does not mean the ARM industry can ignore already published rules. Preparations should be made, with an understanding that things may change.
The only thing consistent in the ARM industry is change, and this is no different. We’ll continue to keep you apprised of developments as they arise.
Update 2:45 p.m. 2/3/25:
Politico is reporting that after being announced, Acting Director Bessent sent an email to CFPB staff directing them to stop all rulemaking and suspend the effective dates of rules that haven’t gone into effect yet. He also ordered employees to halt any activity related to enforcement matters, litigation, and public communications.
The original article posted above suggested that ARM industry participants keep an eye on things as they develop. With this clear and immediate stance from the Acting Director, at least there won’t be anything new to add to the pile.