CFPB’s Chopra Cites Concern for Rise in Pricey Consumer Debt

(Bloomberg) -- Rohit Chopra, the top US consumer financial watchdog, says he’s concerned about the impact of high-rate credit cards and loans facing some American consumers, and his agency is working to ensure the fallout doesn’t spread beyond a few products.

“I do see some worrisome signs in subprime auto and in parts of the credit-card market,” Chopra, the director of the Consumer Financial Protection Bureau, said Friday on Bloomberg Television’s “Balance of Power.”

“We see a little bit of stress and we want to make sure we’re taking the right steps that it doesn’t spread,” Chopra said. “There is no question that the higher rate environment has really hit American households on all types of things.”  

Chopra spoke as financial  markets were being convulsed by new data that showed a weaker labor market, sparking speculation that the Federal Reserve’s decision to hold rates at a two-decade high is risking a deeper economic slowdown. 

His agency is also looking to boost scrutiny of giant asset managers like BlackRock Inc. and Vanguard Group Inc. In his interview, Chopra said the CFPB wants to make sure they’re truly being passive investors and not “calling the shots” to try to influence firms in which they hold large stakes. 

Chopra, who sits on the board of the Federal Deposit Insurance Corporation, advanced a proposal on Tuesday for regulators to exert more influence over whether asset managers or other firms building large stakes in banks should receive stricter regulation and oversight.

--With assistance from Joe Mathieu and Kailey Leinz.

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