Republicans on the Senate Banking Committee have come out and really told Rohit Chopra, the Director of the Consumer Financial Protection Bureau, what they think of his “radical and highly-politicized” agenda, and called on him to stop using “inappropriate tactics” and “stay within the boundaries of law.”
Backstory: Under Chopra’s leadership, the CFPB has frequently issued guidance and shared its thoughts on areas it considers to be either illegal or at least legally questionable. It has come out against overdraft fees charged by banks, empowered states to launch their own investigations of potential violations of federal law, and shared how it sees credit scores being “weaponized” as a collection tool, among others. The CFPB’s aggressive stance has angered Republicans and emboldened Democrats, and it appears as though the gloves might be coming off.
Amping Up the Rhetoric: The content of the letter, sent yesterday to Chopra, is incredibly inflammatory and raises the threat level between Republicans and the CFPB heading into the mid-term elections. The CFPB is accused of adopting an “arrogant regulatory ethos” and thinks it “can do whatever it wants,” the Republicans write.
- “These abuses of power and others by the CFPB are of serious concern. The CFPB is not all-powerful or unaccountable. It must stay within the boundaries of law.”
Next Steps: Anyone who thinks the letter will do anything other than strengthen Chopra’s resolve might be fooling themselves. He has been called out by many during his year on the job and shows no signs of withering under scrutiny from those who really can’t do anything to harm him.
- “The CFPB, however, arrogantly defended its actions by responding, as the judge put it, ‘we’re the CFPB so, essentially, we can do whatever we want.’”