CFPB Remains a Partisan Target
Last week the House Financial Services Subcommittee on Oversight & Investigations held a hearing entitled, “From Watchdog to Attack Dog: Examining the CFPB’s Chopra-era Assault on Disfavored Industries.” The focus was on regulations imposed and actions taken by the CFPB during both the Biden and Trump administrations, with testimony from James Kim, Partner at Cooley; Jennifer Bassett, Chief Executive Officer, Pacific Rim Alliance Corporation; Devin Watkins of the Competitive Enterprise Institute; and Morgan Harper, Director of Policy and Advocacy, American Economic Liberties Project.
Rep. Dan Meuser (R-PA) and Rep. Al Green (D-TX), the Chair and Ranking Member respectively, as well as full Financial Services Committee Ranking Member Rep. Maxine Waters (D-CA) delivered opening statements. Most notably, during his opening statement, Chairman Meuser indicated that he submitted a letter to the Acting Inspector General of the CFPB “requesting a formal investigation into whether Director Chopra consistently exceeded his statutory authority.”
Republicans questioned Bassett on the Bureau’s use of Civil Investigative Demand letters, alleging overstep and lack of probable cause under Director Chopra. They also identified potential violations of the 4th, 5th, and 7th Amendments associated with Chopra-era CIDs, with some subcommittee members suggested eliminating the agency altogether.
Democrats highlighted the CFPB’s returning $21 billion to consumers, while criticizing the Trump administration, focusing both on the lack of a permanent director and that the acting director has not testified before the subcommittee. Rep. Sam Liccardo (D-CA) also questioned the effectiveness of the acting Bureau director, noting the dropped cases against several large financial institutions.
The hearing confirmed that the CFPB remains a partisan target, and AFSA will continue to monitor policymaker engagement on the future role of the Bureau.
July 1st, 2025
