Advocates and lawmakers push state-level CFPB should the federal CFPB retract enforcement of consumer protection laws
For Immediate Release:
February 3, 2025
Contact
Robert Mayo
hello@woodstockinst.org
ILLINOIS – On Saturday, President Trump fired Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra. Reports indicate Treasury Secretary Scott Bessent is currently acting head of the agency.
This leadership transition comes at a highly uncertain time for the CFPB, which has returned over $21 billion to consumers harmed by corporations and financial institutions since its establishment in the wake of the 2008 financial crisis. Although the Supreme Court handed the CFPB a major victory last year by reaffirming the Bureau’s funding structure, prominent Trump surrogate Elon Musk has called to “Delete CFPB” and Project 2025 calls for the agency’s abolishment.
Horacio Méndez, President and CEO of Woodstock Institute, said, “We are grateful to have had the opportunity to work with Director Chopra, whose tenure saw significant progress to rein in bad actors who exploit American families for profit. His successor comes at a critical moment when the rapid rise of new and alternative forms of financial services, including crypto and other fintech products, raise pressing consumer financial protection questions. We hope to work with his successor on these issues with the best interests of everyday Americans in mind.”
If the new leadership is not interested in continuing this work, we in Illinois are exploring what it will take to keep Illinoisans protected from harmful financial practices, including an Illinois state-level Consumer Financial Protection Bureau to fill the gaps left by the federal CFPB.”
“The financial safety of Illinois residents should not be left to the whims of federal politics, which is why we are taking steps towards the creation of a potential Illinois CFPB,” said Illinois State Senator Mark Walker. “This is an opportunity to reaffirm the State’s leadership in protecting our people from fraud and abuse, as the Federal Administration abandons its responsibilities.”
The CFPB had taken action on more than 160,000 complaints from Illinois consumers as of September 2023, largely in response to issues with credit reporting and debt collection. At the state level, Illinois lawmakers have enacted strong consumer protection laws in recent years, including a 36% rate cap on consumer loans and a program that eliminated medical debt for over 52,000 Illinoisans so far.
Under Director Chopra, the federal CFPB doubled down on its mission with a particular focus on lowering costs for consumers through new rules eliminating excessive junk fees, including significant reductions in both credit card late fees and overdraft fees. The Bureau also finalized a new rule banning medical debt from credit reports in the final days of the Biden Administration. The future of these policies is unclear.
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Woodstock Institute is a leading policy and research nonprofit that advocates for consumer financial protection and community economic development. Our work seeks to combat structural inequities and to improve the quality of life in lower-income neighborhoods and communities of color. Among our areas of focus are predatory lending, access to banking, debt collection, and municipal fines and fees.
