Trump taps Bessent to lead consumer bureau as GOP plots big changes

President Trump has tapped Treasury Secretary Scott Bessent as the acting chief of the Consumer Financial Protection Bureau (CFPB).

“I look forward to working with the CFPB to advance President Trump’s agenda to lower costs for the American people and accelerate economic growth,” Bessent said in a statement on Monday.

Trump designated Bessent as acting director on Friday, not long before Rohit Chopra, who served as the agency’s director since 2021, announced his departure the following day.

Chopra, a Democrat appointed by former President Biden, had been serving a five-year term and could have remained in the post through most of next year.

Chopra's departure comes as Republicans plan to use their control of the White House and both chambers of Congress to make big changes at the polarizing financial watchdog agency.

GOP lawmakers have insisted for years that the CFPB has too much power and independence from Congress, which they say the agency uses to impose overbearing regulations and unwarranted court cases on businesses.

Democrats, however, hail the CFPB as one of the most successful creations of the 2010 Dodd-Frank Wall Street reform law, praising its aggressive track record of enforcing and imposing consumer-protection laws.

The watchdog was established under the Obama administration following the 2008 financial crisis. The regulating authority is tasked with enforcing consumer financial laws and the oversight of payday lenders, private mortgage lenders and servicers, debt collectors, credit reporting agencies, and private student loan companies.

However, Republicans have sought to rein in the agency’s powers over the years, with some proposing to completely abolish the office. 

The agency has also faced legal challenges over its funding mechanism, which critics have said is unconstitutional. Republicans have instead pushed for the agency to be funded through the appropriations process instead of the Federal Reserve — a move experts say could weaken the agency’s powers.

Reports emerged shortly after from Bloomberg Law and the Wall Street Journal that staff was directed to halt work on enforcement actions, rulemaking and litigation, among other operations.

The Hill has reached out to the CFPB for comment.

Updated at 12:30 p.m. EST