The US Consumer Financial Protection Bureau has refused to defend Biden-era rules in court after its director, Rohit Chopra, was fired by President Donald Trump. In emergency notices filed with the 5th U.S. Circuit Court of Appeals, the agency’s lawyers stated they would not make any appearances in litigation except to seek a pause in proceedings.
Two cases are currently pending: one involving a Texas federal judge’s ruling that the CFPB unlawfully expanded its authority in March 2022, and another where banking industry groups appeal a ruling requiring lenders to gather demographic data on small business borrowers. A scheduled hearing for the discrimination case was paused due to the new leadership.
Former CFPB director Chopra had faced opposition from Wall Street over his enforcement of consumer protection laws. The Trump administration is expected to curb the agency and potentially roll back recent rules. Acting Director Scott Bessent has been named, replacing Chopra’s term that was set to end in October 2026.
Source: https://www.reuters.com/business/us-consumer-bureau-wont-defend-biden-era-rules-court-after-chief-was-fired-2025-02-03