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Trump’s firing of Chopra threatens consumer protections in the new administration’s latest attack on economic equity

The Greenlining Institute is deeply concerned over the Trump Administration’s unjustified removal of Director Rohit Chopra as Director of the Consumer Financial Protection Bureau. 

Throughout his campaign, Trump repeatedly expressed his intent to weaken the CFPB and ultimately deregulate financial institutions. As we’ve seen in the past—notably in the 2008 financial crisis which prompted the CFPB’s creation—this reckless approach to economic policy enables financial institutions to legally deny the needs of marginalized communities, prioritizing short-term economic gains that inevitably lead to economic instability and deepening inequality. These consequences have and will continue to fall hardest on communities of color and low-income communities that are still grappling with the lasting impacts of redlining. 

As a long-standing ally in the fight for racial and economic justice, Director Chopra has been a champion of our shared mission of creating a financial system that is fair and accessible to communities of color and low-income communities. During his tenure, Director Chopra implemented significant measures that have directly benefited our communities. Among his accomplishments:

• Establishing the 1071 Data Collection Rule: This pivotal rule enables the collection of critical data on lending trends for small businesses. It aims to identify persistent gaps in financial capital and protect BIPOC, women, and LGBTQ+ entrepreneurs from redlining and discrimination.
• Targeting Junk Fees: By addressing hidden charges such as credit card late fees, overdraft penalties, and non-sufficient funds fees, Director Chopra has championed transparency and fairness in financial products. This is particularly vital as credit card debt reaches a historic $1.17 trillion, disproportionately affecting low-income communities.
• Highlighting Financial Discrimination Linked to Climate Risk: The CFPB’s research on floods, insurance, and financial discrimination has shed light on bluelining practices, empowering policymakers to address the inequities exacerbated by climate risk.
• Holding Financial Institutions Accountable: The CFPB, under Director Chopra’s leadership, took decisive action against redlining and discriminatory practices. This includes:
  • Enforcement against non-bank mortgage lender Fairway for redlining Black neighborhoods.
  • Actions against Citigroup for illegal discrimination against Armenian Americans.
  • Securing $22 million in penalties and compensation from Trident Mortgage Company for digital redlining.
  • Suing Capital One for repeated consumer violations, as concerning merger discussions with Discover Bank unfold.
• Challenging Monopolistic Practices: Chopra raised alarms about rising monopolies and the consolidation of financial institutions, which limit consumer choice and weaken Community Reinvestment Act obligations. Chopra emphasized that increasing consolidation highlights the need for Community Benefits Agreements to ensure investments in underserved areas and alignment with consumer protection goals.

We are alarmed at the potential slowdown or reversal of rules protecting vulnerable communities. It is impossible for America’s economy to thrive based on the economic success of an increasingly narrow group of ultra-wealthy corporations and individuals, including those that make up Trump’s inner circles. As advocates, we must do all that we can to resist efforts to move America in this direction. If we fail to act, we risk deepening the racial wealth gap and destabilizing our economy, leaving the most vulnerable communities even more exposed to predatory financial practices, economic volatility, and systemic exclusion.

With the CFPB’s future uncertain, state-level actions to protect consumers in California are more essential than ever. State legislators must strengthen and enforce community investment obligations of nonbanks that do not have federal CRA obligations. As Chopra stated: “It is […] time for state legislators to accelerate efforts to ensure certain nonbank entities have Community Reinvestment Act-like requirements […] to ensure fair access to financial services.”

Moving forward, Greenlining will continue to fight for a robust consumer watchdog dedicated to championing the economic needs of working-class families, low-income households, and marginalized communities. True economic equity requires unfettered access to fair, inclusive, and affordable financial services. We urge policymakers at all levels to prioritize systemic reform that centers the voices of those historically excluded and ensures a just financial system for all—particularly in the precarious political moment we now face.