House Financial Services Committee Republicans are warning new Consumer Financial Protection Bureau Director Rohit Chopra that he had better not return the agency to the days of “regulation by enforcement.”
“We caution you against initiatives that exceed your statutory authority, undermine the credit markets, and have the effect of raising the cost of credit for all Americans,” the GOP members, led by committee ranking Republican, Rep. Patrick McHenry, wrote in a letter to Chopra.
Chopra was sworn in as director last week. After President Biden was sworn in and before a director was confirmed, Dave Uejio had served as acting director. He had adopted a strict regulatory regime similar to that of Richard Cordray, who had served during the Obama Administration.
Chopra is scheduled to appear before the Financial Services Committee on Oct. 27 to provide an update on agency policies.
The GOP members noted that Uejio delayed implementation of major rules and reversed or rescinded several policy statements—actions they said usually were reserved for a Senate-confirmed director. For instance, they said, Uejio rescinded a Trump Administration policy statement that established the parameters of an “abusive” act by a financial services company.
In addition, the Republican members complained, Uejio began enforcing the Military Lending Act once again. The Trump Administration had contended that the CFPB did not have the authority to enforce that law. The GOP members are now warning the new director that he had better not attempt to extend the MLA’s maximum of 36% interest rate to cover non-MLA loans.