
If you missed it, news broke on Saturday that Rohit Chopra is no longer at the helm of the CFPB. Scott Bessent was named as acting director yesterday morning. Politico, reported that by noon yesterday he sent an email to CFPB staff directing them to stop all rulemaking and suspend the effective dates of rules that have not yet gone into effect (full text of the email below). The email also ordered employees to halt any activity related to enforcement matters, litigation, and public communications, including publishing research papers (per NPR).
Bessent was sworn in as Secretary to the Treasury on January 28, 2025. Now he will lead the CFPB until a full-time director is nominated and confirmed.
So, what does all of this mean for those in the ARM industry?
Ultimately time will tell. For right now, though, this clear and immediate action from the newly minted Acting Director seems like a fairly clear indication that the patterns of the previous director are coming to an end. According to CRC Legal Advisory Board member John Bedard of Bedard Law Group, “Acting Director Bessent’s recent directive to Bureau employees appears to mark the beginning of a sea change at the Bureau.”
In addition to keeping an eye on announcements coming from the New CFPB, and pending legislation, those in the financial services industry should keep an eye on state legislatures. Ousting Director Chopra was not a surprise. In January 2025, in an apparent effort to cement his 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.”
According to CRC Legal Advisory Board member, Jedd Bellman of Orrick, who notably spent eight years serving as an Assistant Commissioner in the State of Maryland’s office of Non-Depository Supervision, “Given what we have been seeing from state regulators and the AGs over the past couple of years, along with our recent experience during the past Trump administration, it would seem that these state government actors are poised to fill any perceived void in the regulatory and enforcement landscape.”
“Colleagues,
Secretary of the Treasury Bessent has been named Acting Director of the CFPB, effective January 31, 2025. As Acting Director, Secretary Bessent is committed to appropriately stewarding the agency pending new leadership. In order to promote consistency with the goals of the Administration, effective immediately, unless expressly approved by the Acting Director or required by law, all employees, contractors, and other personnel of the Bureau are directed:
- Not to approve or issue any proposed or final rules or formal or informal guidance.
- To suspend the effective dates of all final rules that have been issued or published but that have not yet become effective.
- Not to commence, take additional investigative activities related to, or settle enforcement actions.
- Not to issue public communications of any type, including publication of research papers.
- Not to approve or execute any material agreements, including related to employee matters or contractors.
- Not to make or approve filings or appearances by the Bureau in any litigation, other than to seek a pause in proceedings.
If you have any questions, please raise issues through your existing management for consideration by the Acting Director.”
We will continue to monitor developments and bring them to you as they arise.
**Consumer Relations Consortium (CRC) members and Auriemma roundtable members will be able to discuss developments with each other at their Q1 members-only meetings. To learn more about the CRC visit us here. To learn more about Auriemma Roundtables, visit us here. To find out if membership is right for your organization, click here.