CFPB Director Hints That He Will Not Resign, But 'Respects' Trump's Right To Fire Him

The director of the US Consumer Financial Protection Bureau (CFPB) has refused to say whether he will resign when Donald Trump takes office, leading to speculation that he will be fired.

On Wednesday (December 11), CFPB director Rohit Chopra appeared before the Senate Banking Committee in what could be his final address to Congress.

Asked by Senator Tim Scott (R-FL) whether he will resign on January 20, 2025, the day Trump takes office, Chopra refused to answer yes or no.

“As you know, we serve and are confirmed for a five-year term,” said Chopra. “The President can remove us at any time, any day, and we obviously, completely respect that right.”

Scott said that he will “look forward” to hearing the news of Chopra’s resignation, and to working with the next director of the CFPB.

The Florida senator said the CFPB has suffered from a lack of accountability under Chopra, during whose directorship the agency’s budget has grown to almost $1bn.

Noting that the CFPB budget is drawn directly from the Federal Reserve System, and hence outside the Congressional Appropriations process, Scott said that lawmakers “must find a way” to address the issue of CFPB funding.

In May, as covered by Vixio, the Supreme Court ruled in the CFPB’s favour that its direct funding structure is lawful and constitutional.

One month later, a group of Republican senators, which included Scott, filed a bill to abolish the CFPB’s direct funding structure.

What happens if Chopra refuses to go?

Chopra’s term as CFPB director began on October 12, 2021, some three years and two months ago, so he is not term-barred from serving under Trump.

As such, if Chopra does not voluntarily resign, Trump would have to fire him “for cause” — a move that Chopra could appeal against.

Under the Dodd-Frank Act of 2010, the legislation that authorised the creation of the CFPB, “cause” can refer to inefficiency, neglect of duty, misconduct or malfeasance in office.

In the short history of the CFPB, which was established in 2011, no President has had to invoke these powers to remove a CFPB director. 

In 2021, on the day that President Joe Biden took office, Trump-appointed former director of the CFPB Kathy Kraninger submitted her resignation, despite not being term-barred from continuing to serve.

Kraninger had served as CFPB director for just over two years.