Scott Bessent, recently confirmed as Treasury Secretary, has been appointed as the acting director of the Consumer Financial Protection Bureau by President Trump. This move follows the dismissal of Rohit Chopra from the position. Bessent, a prominent hedge fund manager known for his business-friendly approach, expressed his commitment to furthering President Trump’s economic agenda in his new role.

Under Chopra’s leadership, the CFPB implemented various consumer protection regulations, such as restrictions on overdraft fees and credit card late fees, as well as prohibiting medical debt from impacting credit reports. The decision to appoint Bessent was met with approval from the Consumer Bankers Association, who hope for a reconsideration of regulations introduced during Chopra’s tenure. However, consumer advocates, including Tony Carrk of Accountable.US, criticized the selection of Bessent, raising concerns about potential implications for consumer protections.

Established in 2010 under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB operates independently within the Federal Reserve system and is funded separately from congressional appropriations. The bureau’s creation aimed to safeguard consumers from financial institution misconduct and prevent future economic crises. This appointment underscores the ongoing debate between business interests and consumer advocacy within the financial regulatory landscape.