Rohit Chopra’s Bold Regulatory Moves and Potential Republican Backlash

Rohit Chopra, the director of the Consumer Financial Protection Bureau, is making bold moves as the Biden administration nears its end. Despite facing backlash from Congressional Republicans, Chopra has been rolling out new regulations that are both splashy and controversial.

In December, the CFPB finalized rules that significantly limit overdraft fees on bank accounts, sparking outrage from the financial industry and leading to an immediate lawsuit. This week, the agency finished a regulation that prohibits medical bills from being included on consumer credit reports, much to the dismay of banks, debt collectors, and hospitals.

While Chopra’s aggressive approach may seem risky, Republicans are considering using the Congressional Review Act to undo some of his actions. This law allows lawmakers and the president to repeal recently completed rules, potentially preventing similar regulations from being enacted in the future.

Industry lobbyists are already urging Republicans to take action, with one stating, “This is exactly what the Congressional Review Act is for.” However, the CFPB seems confident that these consumer protection measures will be difficult for Republicans to overturn, as they are seen as populist and likely to be popular among the public.

Chopra’s push has received support from key Capitol Hill Democrats, but it has also drawn criticism from Republicans who accuse him of engaging in “midnight rulemaking.” The outcome of this battle remains uncertain, as Republicans have yet to confirm whether they will attempt to repeal the regulations.

Overall, Chopra’s last-minute regulatory efforts are setting the stage for a potential showdown between the outgoing administration and Congressional Republicans. The future of these consumer protection measures hangs in the balance as the Biden administration prepares to hand over power.
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