(Adds more context, quotes)WASHINGTON, Jan 20 (Reuters) - Kathy Kraninger has resigned effective immediately as director of the U.S. consumer watchdog at the request of President Joe Biden’s administration, she tweeted shortly after Biden was sworn in on Wednesday, paving the way for the new president to quickly install an interim agency head.
Kraninger was appointed by former Republican President Donald Trump to serve a five year term as director of the Consumer Financial Protection Bureau (CFPB) ending in 2023.
Last year, however, the Supreme Court ruled in favor of a challenge, backed by the Trump administration and long-supported by most Republicans, which argued that the CFPB director served at the president’s will.
It was unclear whether the White House planned to install Chopra as acting CFPB director pending his Senate confirmation, or whether Kraninger’s deputy or another CFPB staffer would lead the agency in the interim.
Consumer groups have fiercely criticized Kraninger for defanging the agency by relaxing enforcement and easing rules on payday lending, mortgage lending, and debt collection.
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