But it was blocked by litigation and the Trump White House. The alternative version of the administration of it —issued in 2020—I had no such requirement. Indeed, little has changed yet for payday loans. Chopra will not only have to re-enter this debate, but will also have to deal with the ways in which these small loans have continued to evolve.
Over the past decade, a host of startups have sprung up to allow workers to advance their paychecks for a fee. Under Trump, officials recommended that these so-called access to earned wage products are not regulated as credit, but consumer and worker groups have urged Chopra to revoke this guideline, which they say creates dangerous loopholes in payday loans. Chopra told me the CFPB will “watch it closely” and more broadly is concerned about rising debt driven by employers, such as workers taking out loans for training, equipment or potential clients. “This is a worrying trend,” he said, “and as the distinction between consumers and workers blurs, we will be increasingly active in this space.”
Thanks to his early days at the CFPB, Chopra has been a close ally of Elizabeth Warren for years. “I have no doubt that you are the right person to lead the office at this time,” the senator said. saying at his confirmation hearing last year. Thanks to that friendship, progressive advocates have been optimistic about the direction Chopra will take for the agency. “He’s extraordinarily progressive, but he was also one of the few registered Democrats to be confirmed through the McConnell gauntlet in the Trump years,” said Felicia Wong, president of the Roosevelt Institute, a think tank where Chopra briefly worked as member.
Still, as the manipulation of payday loans illustrates, enacting reforms that can really last won’t be easy, which may explain in part why Chopra’s early actions have been in focus on brighter Big Tech topics like Apple Pay or cryptocurrencies. National consumer groups have placed confidence in the CFPB’s new director, thanks to his track record, but that goodwill may also have led to a confused silence about the agency’s new debt collection rule, which was issued on Monday. final stretch of the Trump administration and took effect in November.