What is the Consumer Financial Protection Bureau (CFPB) and how are its operations changing under new leadership?

The CFPB was established in 2010 following the Great Recession to protect consumers from financial institutions and prevent another crisis. Under Rohit Chopra's leadership since 2021, the bureau implemented aggressive regulations against big banks, including limiting overdraft fees, capping credit card late fees, and banning medical debt from credit reports. Now, with Scott Besant appointed as acting director after Chopra's firing, the CFPB's operations have dramatically shifted. Besant has ordered a freeze on regulatory activities, halted enforcement actions, and directed lawyers to stop defending existing regulations in court. This leadership change has drawn celebration from Republicans and financial institutions while sparking backlash from consumer advocates and Democrats who warn it threatens basic consumer protections.