The Consumer Financial Protection Bureau (CFPB) is recalling formerly fired or pushed-out staff members of the Trump administration, a sharp departure of course for the agency during President Biden. The move reflects the ongoing political fight over the CFPB’s priorities and objectives.
During Trump, the CFPB, which was designed to protect consumers from predatory financial methods, was largely remade. During then-Director Mick Mulvaney’s leadership, the agency throttled back enforcement and lost numerous staffers who at first felt it was their calling. Some workers were fired, resigned, or transferred as the agency realigned priorities.
And now, with Director Rohit Chopra leading the way, the CFPB is bringing some of those employees back as part of an effort to rebuild the agency’s consumer protection mission. “We are dedicated to the CFPB as the strong, independent agency that it was designed to be,” Chopra stated. “That means bringing talented employees back who share our vision of fighting for consumers.”
Consumer advocate organizations have endorsed the rehiring plan, insisting that the work of the CFPB is important to preventing everyday Americans from being hurt by predatory loans, abusive bank policies, and other financial trickery. “The CFPB is an essential watchdog that ensures that banking institutions are behaving well,” expressed Public Citizen’s executive vice president Lisa Gilbert. “Rehiring these employees is a sound step.”.
But the move has been attacked by some Republicans and business groups, who argue that the CFPB is becoming too aggressive in the Biden administration. They argue that the agency’s increased focus on enforcement can discourage innovation and damage businesses.
The CFPB’s return to a more activist strategy is troubling,” said David Stevens, a former Mortgage Bankers Association CEO. “We want a balanced strategy that protects consumers without overwhelming the financial industry.
The CFPB’s shifting agenda is indicative of wider Washington politics. In President Biden’s administration, the agency has moved aggressively on priorities such as racial equity in lending, student loan safeguards, and ending junk fees levied by banks and credit card issuers. These moves fit into the administration’s overall economic agenda, which prioritizes fairness and accountability in the financial sector.
For the rehired workers, the opportunity to return to the CFPB is both personal and professional. Many of them had dedicated their careers to consumer protection and were deeply affected by the agency’s shift under Trump. “It feels like coming home,” said one rehired employee, who asked to remain anonymous. “We’re excited to get back to work and make a difference for consumers.”
As the CFPB rebuilds, its activities will be sure to continue to be a hot button issue in the debate over the appropriate role of government in regulating the financial sector. For the moment, the return of these employees is a reaffirmation of the agency’s initial mandate—to prioritize consumers.
