CFPB director Kraninger resigns at Biden’s request (1)

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Director of the Consumer Financial Protection Bureau, Kathy Kraninger, announced her resignation on Wednesday.

Kraninger, a Trump-appointed person who obtained Senate confirmation for the post in December 2018, tendered his resignation within an hour of President Biden’s inauguration and at the president’s request. She intends to leave immediately.

“I support the president’s constitutional prerogative to appoint senior officials in government who support the president’s political priorities, which ensures that our government responds to the will of the people expressed in the presidential elections,” Kraninger wrote in a letter. in Biden.

Biden was expected to fire Kraninger if she didn’t go on her own. The June decision of the United States Supreme Court Seila Law LLC v CFPB makes the director of the independent and self-funded agency an employee at will of the president by removing the protections of dismissal for cause.

On January 18, Biden announced he would appoint Federal Trade Commission Commissioner Rohit Chopra, former CFPB Student Loans Ombudsman, for a five-year term as office manager. It’s unclear whether Biden will call on Chopra to take over CFPB on an interim basis, or appoint another official.

During Kraninger’s tenure, the CFPB reduced regulation of the payday lending industry, finalized rules for the debt collection industry, and made a host of other changes to consumer credit regulation.

Biden was expected to fire Kraninger if she didn’t go on her own. The June decision of the United States Supreme Court Seila Law LLC v CFPB makes the director of the independent and self-funded agency an employee at will of the president by removing the protections of dismissal for cause.

The CFPB under Kraninger’s tenure also experienced a slowdown in enforcement compared to Obama-era CFPB director Richard Cordray.

Under Kraninger’s two-year tenure, the CFPB raised around $ 1.5 billion in consumer aid. Cordray’s CFPB has raised more than $ 12 billion in consumer assistance over more than five years.

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