Major Banks Face Lawsuits Over CFPB Regulations
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The United States President, Donald Trump has recently fired Rohit Chopra from the office of the head of Consumer Financial Protection Bureau. According to a source, the news of Chopra’s dismissal got to him through an email from the White House.
Before now, Chopra had been severely criticized on X by some lawmakers, who accused him of making rules that favored consumers leaving hard ends for financial companies. Chopra said his tenure as director of the CFPB has come to an end, meanwhile he is hoping the agency will work very well with whoever the next director will be, so as to continue progressing.
Major Banks Including JPMorgan Chase Face Lawsuits From The CFPB
Major consumer banks, including Bank of America and JPMorgan Chase, are facing lawsuits from the Consumer Financial Protection Bureau (CFPB). These banks, along with technology industry leaders, have urged President Donald Trump to remove Rohit Chopra from his position as director of the CFPB. According to the update, this was made possible by a Supreme Court ruling in 2020 that allows presidents to dismiss CFPB directors.
Chopra was appointed in 2021 by former President Joe Biden. His role included overseeing financial agencies and serving as a board member of the Federal Deposit Insurance Corporation. However, he will no longer serve in that position.
During his time as CFPB director, Chopra introduced new rules to limit overdraft and credit card late fees. One of these rules aimed to reduce late fees on credit cards to $8. However, a federal judge later blocked this regulation. Another rule, finalized last year, would lower overdraft fees to $5 from the usual $35. This rule is expected to face legal challenges.
Chopra also worked on a policy to help consumers access personal banking data more easily. This was meant to allow customers to switch banks with fewer difficulties. Additionally, before Trump took office, the CFPB finalized a rule that would remove about $49 billion in medical debt from credit reports.
Warren And Lawmakers Support Strong Consumer Protections
Warren, who is now a key member of the Senate Banking Committee, praised Chopra for holding banks accountable. According to the update, she said he has worked to stop financial institutions from taking advantage of families. She made this statement on Saturday while speaking about the CFPB’s role in regulating banks.
Despite their past disagreements with Trump, Warren and other progressive lawmakers, including Senator Bernie Sanders, have expressed support for his promise to cap credit card interest rates. Trump’s plan aims to set a temporary limit of 10%, which is much lower than current rates reported by the Federal Reserve.
