23 AGs Warn Against Efforts to Defund and Shut Down Consumer Protection Agency

Amicus Brief

TRENTON – New Jersey Attorney General Matthew J. Platkin and New York Attorney General Letitia James today co-led a coalition of 23 attorneys general to warn against efforts by the Trump Administration and Elon Musk to defund and disband the Consumer Financial Protection Bureau (CFPB). The CFPB is an independent agency that oversees big banks, lenders, credit card companies, and mortgage servicers and ensures companies are following federal consumer protection laws. Since its creation, the CFPB has protected millions of Americans by helping homeowners facing foreclosure stay in their homes, stopping banks from charging junk fees, and returning more than $20 billion to the pockets of consumers nationwide. The coalition argues in an amicus brief filed in the U.S. District Court for the District of Maryland that dismantling the CFPB would significantly harm consumers and hamper enforcement of federal consumer protection laws.

“Through an unelected billionaire, President Trump is attempting to destroy a critical watchdog that has saved the homes of New Jerseyans, returned hard-earned money to the pockets of our residents, and fought to protect consumers from the abusive conduct of major corporations,” said Attorney General Platkin. “The Trump Administration has made clear that its priority is to protect the wealthiest and most powerful interests in our country, not the rights of consumers. We are fighting back against this clear attempt to gut consumer protections while elevating bad actors over the American people.”

On February 9, the Trump Administration directed the CFPB to stop all its ongoing work and to not begin any new investigations. The CFPB was formed in 2011 following the Great Recession to enforce federal consumer protection laws. Since its creation, the CFPB has worked with state attorneys general to address consumer issues related to banking, student loan servicers, mortgage servicers, auto lending, and other consumer financial matters. The CFPB has also partnered with attorneys general to stop deceptive, unfair, and abusive conduct by companies. As a result of the Trump Administration’s actions, the nation’s largest banks are no longer being closely watched for compliance with key consumer protections.

In their brief, the coalition argues that the administration’s efforts to destroy the CFPB could prevent consumers from reporting issues of fraud or deception. The coalition also writes that efforts to shut down the CFPB would significantly reduce oversight of very large banks, further harming consumers. The attorneys general warn that this may lead to financial institutions skirting regulatory compliance, as was seen in the years leading up to the financial crisis.

Joining Attorney General Platkin in today’s brief are the attorneys general of New York, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia.

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