[5] Written Testimony before the Committee on Budget, (June 4, 2014),  https://www.consumerfinance.gov/about-us/newsroom/written-testimony-of-rohit-chopra-before-the-committee-on-the-budget/; Written Testimony of, FTC Commissioner Rohit Chopra Before the US House of Representatives Committee on Financial Services. [7] Richard Cordray, White Paper: Immediate Actions for CFPB to Address Covid-19 Crisis, (Apr. Bureau, 140 S. Ct. 2183, 207 L. Ed. President Joe Biden’s nominee to lead the Consumer Financial Protection Bureau, Rohit Chopra, will face questions on his leadership plans from the Senate Committee on Banking, Housing and Urban Affairs during a hearing at 10 a.m. EST Tuesday, March 2.. Chopra was on the short list of who Biden might pick to replace CFPB Director Kathy Kraninger, ACA International previously reported. [11] Introductory Remarks of Commissioner Rohit Chopra, National Fair Housing Alliance 2020 National Conference, (Oct. 6, 2020), https://www.ftc.gov/system/files/documents/public_statements/1581594/final_remarks_of_rchopra_to_nfha_v3.pdf. Fair Lending and the Use of Artificial Intelligence. For example, at a Fair Housing Alliance conference, Chopra stated: While machines crunching numbers might seem capable of taking human bias out of the equation, they can’t. Lucy Morris. Lucy E. Morris. Be careful what you wish for. Biden's CFPB nominee Rohit Chopra brings 'substantive' regulatory expertise. The Senate Committee on Housing, Banking and Urban Affairs voted 12-12 Wednesday on Rohit Chopra’s nomination to lead the Consumer Financial Protection Bureau. The Biden Transition has announced that President-elect Biden has nominated Rohit Chopra to serve as CFPB Director. Chopra has also signaled strong support for disparate impact analysis in fair lending, stating “[g]iven the difficulty of uncovering direct evidence of discriminatory intent, disparate impact analysis is critical for detecting potentially unlawful discrimination.”, Chopra’s skepticism regarding the use of artificial intelligence appears to extend to technology more generally. President Biden has nominated Federal Trade Commission (FTC) Commissioner Rohit Chopra to serve as Director of the Consumer Financial Protection Bureau (CFPB). CFPB enforcement activity decreased by 54 percent under the leadership of Trump appointees. We also expect Chopra to focus on debt collection. [10] Comment Submitted by Rohit Chopra, Federal Trade Commission to the Department of Housing and Urban Development on the Disparate Impact Proposed Rulemaking, (posted on Oct. 17, 2019), https://beta.regulations.gov/comment/HUD-2019-0067-1960; Statement of Commissioner Rohit Chopra. Commonsense rules for ensuring accuracy in the collection and sale of debt would cut off at the source abuses like those seen in this case . Minority-owned businesses are especially struggling to access PPP and other forms of credit. During his nomination hearing in front of the United States Senate Committee on Banking, Housing, and Urban Affairs, Chopra testified about his potential regulatory and enforcement priorities as head of the consumer finance regulator. In this client alert, we look through the considerable written record of Chopra’s views to better understand the approach he may take to his new role as CFPB Director. [3] Thus, Commissioner Chopra, once in office, will be able to quickly chart the agency on a new, more muscular course. President Biden recently announced his nomination of Democrat Rohit Chopra as the next Director of the Consumer Financial Protection Bureau (CFPB). Several years ago, when the CFPB launched a rulemaking on third-party debt collection, the agency indicated that it planned to address first-party debt collection on a separate track. . February 2, 2021. Such an emphasis would be consistent with Chopra’s focus on the need to protect vulnerable populations, including the elderly. On March 11, 2021, the Senate Committee on Banking, Housing, and Urban Affairs, in a tied vote (12-12), advanced the nomination of Rohit Chopra to the position of CFPB Director… Because of the Supreme Court’s decision in Seila Law holding that the President has the power to fire the CFPB Director, the CFPB more closely carries out the current administration’s agenda than was intended in the Dodd-Frank Act which had sought to structure the bureau as an independent agency. Our nation’s largest banks have been accused of steering limited PPP dollars to their richest clients, shutting out many local businesses. Unlike the former CFPB director, Kathy Kraninger, who had zero experience in consumer protection before being tapped by Trump to run a consumer-protection agency, Chopra … He also stated that “[a]ggressive enforcement that promotes competition and protects consumers and honest businesses, complemented by rigorous analysis of the marketplace to eradicate unfair contract terms and business practices across sectors of the economy, is essential.”, Chopra’s writings also express concern with government employment of people with private sector experience. In May 2018, Chopra sent a memorandum to Commission Staff and Commissioners with proposals regarding “repeat offenders.” Chopra argued that “[w]hen companies violate orders, this is usually the result of serious management dysfunction, a calculated risk that the payoff of skirting the law is worth the expected consequences, or both” and that “[e]ither of these explanations requires serious remedies that address the underlying issues.” To address these issues, Chopra proposed “changing incentives by seeking monetary remedies” and “seek[ing] to correct both the miscalibrated incentives and the management deficiencies through structural remedies, including the dismissal of senior management and board directors, changes to executive compensation, outright bans on adjacent business practices, and closure of appropriate business lines.”. By. While he was at the CFPB, it was reported that he “used his public stage to push student-loan companies into improving their treatment of borrowers” using a “style of applying pressure through public means—a big departure from the more measured style of other financial regulators.”. [12] Rohit Chopra: Consumer Protection in an Age of Uncertainty Keynote Conversation (Day 2), (Mar. 22, 2019), https://fordschool.umich.edu/video/2019/rohit-chopra-consumer-protection-age-uncertainty-keynote-conversation-day-2; Rohit Chopra and Samuel A.A. Levine, The Case for Resurrecting the FTC’s Penalty Offense Authority,(Nov. 3, 2020), https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3721256. © 2021 Covington & Burling LLP. Second Circuit Asks: Will New York Recognize Cross-Jurisdictional Class Action Tolling? 1623238, (May 27, 2020), https://www.ftc.gov/system/files/documents/public_statements/1576002/bronx_honda_final_rchopra_bronx_honda_statement.pdf. . and authorized and regulated by the Solicitors Regulation Authority with registration number 77071. The “new” CFPB has begun unwinding previous decisions and policies, and in its enforcement, examinations and rule writing is likely to pick up where former Director … next. Rohit Chopra will be nominated as the next Director of the Consumer Financial Protection Bureau (CFPB or Bureau). In May 2018, Chopra co-authored a report for the Roosevelt Institute’s The Great Democracy Initiative, entitled, “Unstacking the Deck: A New Agenda to Tame Corruption in Washington.” The report provided recommendations “[t]o root out corruption and restore faith and trust in our government.” In this report, Chopra identified as a significant issue “the revolving door—where individuals move between government service and special interests,” arguing that it “contributes to ‘cultural capture,’ where officials in federal government agencies see their interests as more closely aligned with the entities they regulate, rather than the interests of the public.”, Chopra recommends restrictions on “certain individuals from activities that would benefit their prior employers” and “bann[ing] certain individuals from occupying senior government positions altogether.” Chopra also recommends “[t]ighten[ing] post-employment restrictions for employees departing public service” and “[c]racking down on ‘burrowing’ by political appointees into career positions.” In addition, Chopra would “[f]orbid corporate bonuses for government service” and “[e]nact a lifetime ban on lobbying for senior executive branch officials and members of Congress.”. FTC Commissioner Rohit Chopra to be Named CFPB Director - A Strong Consumer Advocate and Aggressive Law Enforcer. The practice in Dublin Ireland is through a general affiliated Irish partnership, Covington & Burling and authorized and regulated by the Law Society of Ireland with registration number F9013. Regulated entities can expect enforcement to ramp up as the agency reverses efforts by the Trump administration to reduce the agency’s impact. [9] Rohit Chopra, (Apr. We learned the hard way that the cost of inaction is too high. Chopra’s history with the CFPB dates back to the agency’s inception in the wake of the financial crisis of 2008. [8] Senators Elizabeth Warren and Sherrod Brown, Congress Must Provide Immediate Relief for Consumers. The issue areas outlined here are likely to take center stage in this new era for the Consumer Financial Protection Bureau. [6] Written Testimony of FTC Commissioner Rohit Chopra Before the US House of Representatives Committee on Financial Services “Examining Legislation to Protect Consumers and Small Business Owners from Abusive Debt Collection Practices,” (Sept. 26, 2019), https://www.congress.gov/116/meeting/house/110015/witnesses/HHRG-116-BA00-Wstate-ChopraR-20190926.pdf. Posted by Jenner & Block LLP at 04:04 PM | Permalink, Consumer Finance Observer – Winter 2021 Edition, What to Expect from Director Rohit Chopra’s CFPB, https://www.ftc.gov/system/files/documents/public_statements/1578363/chopra_-_statement_on_dodd-frank_anniversary.pdf, https://twitter.com/SenWarren/status/1351168329071915008, https://www.citizen.org/wp-content/uploads/migration/consumeragencies.pdf, https://www.consumerfinance.gov/about-us/newsroom/written-testimony-of-rohit-chopra-before-the-committee-on-the-budget/, https://www.congress.gov/116/meeting/house/110015/witnesses/HHRG-116-BA00-Wstate-ChopraR-20190926.pdf, https://medium.com/@RichCordray/cfpbwhitepaper-193a5aed0d75, https://medium.com/@SenWarren/congress-must-provide-immediate-relief-for-consumers-heres-how-2aeb99672ef9, https://twitter.com/chopraftc/status/1252671473120051201, https://beta.regulations.gov/comment/HUD-2019-0067-1960, https://www.ftc.gov/system/files/documents/public_statements/1576002/bronx_honda_final_rchopra_bronx_honda_statement.pdf, https://www.ftc.gov/system/files/documents/public_statements/1581594/final_remarks_of_rchopra_to_nfha_v3.pdf, https://fordschool.umich.edu/video/2019/rohit-chopra-consumer-protection-age-uncertainty-keynote-conversation-day-2, https://www.ftc.gov/system/files/documents/public_statements/1549812/chopra_-_testimony_at_hearing_on_online_platforms_and_market_power_part_3_10-18-19.pdf, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3721256. [4] Focus areas for a reinvigorated CFPB are likely to include: Thus, regulated entities can expect increased activity from a CFPB led by Rohit Chopra. What Happened. We cannot repeat these mistakes again . In the Matter of Liberty Chevrolet, Inc. d/b/a Bronx Honda Commission File No. Hudson Cook, LLP. Chopra, 38, is an acolyte of Massachusetts Senator Elizabeth Warren who helped her set up the CFPB before she ran for office. Cordray described Mr. Chopra as a “creative and talented public servant” whose views are aligned with how the CFPB operated under Mr. Cordray’s leadership. By: Kali Bracey and Erica S. Turret. Chopra has a voluminous record, and the foregoing sets forth some clear themes to his speeches and writings. Chopra’s nomination as CFPB Director (discussed previously here ) was advanced to the full senate by a 12-12 committee vote all the way back in March, along with President Biden’s nominee to serve as SEC Chair, Gary Gensler. He has expressed caution regarding the effect of technology and big data on consumers, stating “[a]buse and misuse of personal data is an urgent concern for our economy, society, and national security.” He has also warned that “we need to investigate how technology platforms may be a threat to our civil rights and the goals of fairness we seek in our society.”. Biden Taps Gensler as SEC Chairman, FTC’s Chopra as CFPB Chief. 21, 2020), https://medium.com/@SenWarren/congress-must-provide-immediate-relief-for-consumers-heres-how-2aeb99672ef9. During his time at the FTC, Chopra established a record of objecting to the amount of redress awarded to consumers and criticizing the lack of monetary penalties imposed. He marked the decade since passage of the Dodd-Frank Act that created the CFPB with a … -. “Examining Legislation to Protect Consumers and Small Business Owners from Abusive Debt Collection Practices,” (Sept. 26, 2019), https://www.congress.gov/116/meeting/house/110015/witnesses/HHRG-116-BA00-Wstate-ChopraR-20190926.pdf. Despite support for this approach, it never did. Chopra is widely regarded as an ally of Senator Elizabeth Warren (D-Ma. He was one of the initial architects of its implementation and served first as its in-house student loan liaison, then as assistant director under the CFPB’s initial leader, former Ohio Attorney General Richard Cordray. questioned Consumer Financial Protection Bureau (CFPB) Director Nominee Rohit Chopra, currently Commissioner at the Federal Trade Commission, about CFPB's role enforcing fair lending laws and protecting consumers in a housing crisis. He was an assistant director of the CFPB under President Obama and more recently has served as a member of the Federal Trade Commission. Further, in an FTC settlement with a debt collector, Chopra commented on the tools available to the CFPB with respect to debt collection: Here, the CFPB has important tools that could significantly reform this market. It relies on false assertions, misapplication of law, and specious logic. However, it bears noting that Chopra will be stepping into a new role as USA February 1 2021. Finally, the record makes clear that Chopra is wary of the “revolving door” between government service and private sector employment. President Biden has nominated Federal Trade Commission (FTC) Commissioner Rohit Chopra to serve as Director of the Consumer Financial Protection Bureau (CFPB).

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