SACRAMENTO, Calif. — Former Consumer Financial Protection Bureau Director Rohit Chopra—who drew both the praise from some in credit unions and the ire from others while at the CFPB–has been appointed to lead California’s newly created Business and Consumer Services Agency as the state moves to expand consumer protection oversight amid a pullback at the federal level.
The new agency is scheduled to launch July 1 following the breakup of California’s current Business, Consumer Services and Housing Agency, BankingDive reported.
California Gov. Gavin Newsom proposed the government reorganization last year, splitting responsibilities between two separate agencies — one focused on business regulation and consumer protection and the other dedicated to housing and homelessness issues.
Will Oversee Numerous Entities
The new Business and Consumer Services Agency will oversee numerous state entities, including the California Department of Consumer Affairs and the California Department of Financial Protection and Innovation.
“While federal agencies are making life more expensive and enriching special interests, California will be firing on all cylinders to make sure markets aren’t rigged against families and small businesses,” Chopra said in a statement cited by BankingDive.
Chopra said the consolidated agency structure is intended to strengthen oversight and coordination across multiple regulatory departments covering sectors including financial services, healthcare and technology.
California officials have said the restructuring is also aimed at modernizing the state’s consumer protection framework as federal enforcement efforts decline.
Term at CFPB
Chopra previously led the CFPB during the Biden administration, where he became known for targeting so-called “junk fees” and alleged unfair business practices affecting consumers. He departed the Bureau in February and since his departure the Trump administration has largely reversed course, seeking to close the agency and gut its personnel and prior enforcement orders.
