Did the CFPB Go Rogue?

Did the CFPB Go Rogue Late-Night Subpoenas Spark Controversy

Did the CFPB Go Rogue? Late-Night Subpoenas Spark Controversy

The Consumer Financial Protection Bureau (CFPB) is once again at the center of controversy. Rep. William Timmons (R-SC) recently raised concerns about last-minute enforcement actions taken by the agency under Director Rohit Chopra—right before his resignation.

Was this a coordinated attack on businesses? Or just bureaucratic chaos? Let’s break it down.

🚨 The Friday Night Subpoena Scandal

📌 What happened?
🔹 On a Friday at 5:55 PM, businesses in Rep. Timmons’ district received Civil Investigative Demands (CIDs)—which are essentially subpoenas.
🔹 Minutes later (6:05 PM), more businesses were hit with CIDs.
🔹 By law, publicly traded companies must disclose investigations, meaning this could have major financial repercussions.
🔹 These actions were taken just before Director Chopra resigned.

📞 The Saturday Morning Panic:
Rep. Timmons was flooded with calls from concerned business owners who saw this move as an attempt to weaponize regulations before new leadership could take over.

📝 The Letter to the Wrong Director:
In response, Rep. Timmons sent a letter to who he believed was the acting CFPB director, urging them to halt the CIDs. However, on Monday, he realized he had addressed the wrong official!

⚖️ Is the CFPB Abusing Its Power?

The CFPB was asked to pause new enforcement actions after the election—and most government agencies complied.
But instead of slowing down, Director Chopra’s CFPB went into overdrive.

📌 Key concerns:
✅ Sending subpoenas after business hours on a Friday (highly unusual)
✅ Impacting publicly traded companies without warning
✅ Ignoring bipartisan requests to pause enforcement actions
✅ Initially denying that new leadership’s policy changes applied to these cases

💬 Rep. Timmons’ reaction:
“I guarantee you this is not normal. We have to protect consumers, but when the CFPB goes rogue, it is detrimental to the U.S. economy.”

💼 The Bigger Picture: CFPB’s Controversial History

This latest scandal is not the first time the CFPB has faced accusations of government overreach:

🔸 Expanded regulations under the Biden administration
🔸 Heavy enforcement actions impacting small businesses
🔸 Legal challenges questioning CFPB’s authority

With a new administration incoming, financial institutions and businesses are hoping for balance instead of aggressive enforcement.

🔎 What Happens Next?

📌 Congressional Investigation:
🔹 Chairman Patrick McHenry (House Financial Services) and Chairman Tim Scott (Senate Banking) are demanding a full list of all last-minute enforcement actions.
🔹 Lawmakers want to determine whether the CFPB acted improperly in targeting businesses right before new leadership took over.

📌 CFPB Leadership Change:
🔹 With Director Chopra’s resignation, the Biden administration will appoint a new director.
🔹 Financial experts expect policy shifts, but whether they bring relief or more regulation remains to be seen.