A coalition of 23 state attorneys general, led by New Jersey Attorney General Matthew J. Platkin and New York Attorney General Letitia James, has filed an amicus brief warning against the Trump Administration’s ongoing efforts to dismantle the Consumer Financial Protection Bureau (CFPB). The CFPB, an independent agency established after the 2008 financial crisis, plays a crucial role in overseeing financial institutions like banks, mortgage servicers, and credit card companies, ensuring they adhere to consumer protection laws.
The coalition argues that the administration’s push to defund and disband the CFPB would significantly harm American consumers, who rely on the agency’s protections against fraud, deceptive practices, and financial abuse. Since its creation in 2011, the CFPB has returned more than $20 billion to consumers nationwide, assisted homeowners facing foreclosure, and curbed harmful practices like junk fees.
“The Trump Administration is attempting to destroy a critical watchdog that has saved the homes of New Jerseyans, returned hard-earned money to our residents, and fought to protect consumers from abusive conduct,” said New Jersey Attorneys General Platkin. “This is yet another clear effort to prioritize the wealthiest and most powerful interests over the rights of everyday consumers.”
“After the Great Recession left people vulnerable to financial harm, lawmakers created the CFPB to give consumers an ally in Washington,” Colorado Attorney General Phil Weiser said. “I have worked extensively with the CFPB to protect Coloradans during my time in office, and I know people here and across the country will be harmed if the agency is shuttered. Regardless, I will continue to enforce Colorado and federal law to protect consumers.”
“The Trump Administration’s takeover of the CFPB is an effort to destroy the federal agency responsible for protecting American families from being exploited by big banks and payday lenders. Eliminating the only federal agency with oversight over big banks puts everyday consumers at higher risk for financial losses, and places higher demands on states like California,” said California Attorney General Rob Bonta. “From bank overdraft fees and credit card late fees to medical debt on credit reports, the CFPB has actively worked to make the lives of everyday people better — its loss will have devastating and deep implications for California, and the financial well-being of households across the nation.”
According to AP, The conflict began on February 9 when the Trump Administration directed the CFPB to halt all ongoing work, including investigations and the implementation of new rules. The directive has disrupted key initiatives aimed at protecting consumers from predatory financial practices, including capping bank overdraft fees and removing medical debt from credit reports.
The 23 attorneys general argue in their brief that the cessation of the CFPB’s operations would leave consumers vulnerable to fraud and deceptive practices by large financial institutions. They warn that, without robust oversight, these institutions may once again engage in the kinds of abuses that contributed to the 2008 financial crisis.
“The CFPB has been a tremendous watchdog, protecting Americans from deceptive fees, predatory loans, and shady financial schemes that drain money from hard-working families,” Michigan Attorney General Dana Nessel said. “Without this crucial agency, tens of billions of dollars would have never been returned to defrauded consumers. Michiganders deserve a champion that fights for them. I will continue to stand with Americans across our nation to ensure the CFPB remains in their corner.”
“The CFPB expanded upon the work of states and federal partners to become the primary agency setting national rules to reign in the unfair and deceptive mortgage lending and servicing that directly led to the Great Recession,” Illinois Attorney General Kwame Raoul said. “My office has successfully partnered with the CFPB regularly to protect Illinois consumers. I’m proud to stand with my fellow attorneys general, for the second time this week, to oppose the illegal attempts to dismantle this critical watchdog.”
“A healthy marketplace requires consumer trust,” said Vermont Attorney General Charity Clark. “The CFPB, created in the aftermath of the 2008 financial crisis, fosters consumer trust and protects both the consumer and the marketplace. To go back in time and destroy the CFPB is to imperil the economic stability that we have worked so hard to build.
The CFPB, which partners with state attorneys general, has been instrumental in addressing consumer issues related to banking, student loans, mortgages, and auto lending. It was funded through the Federal Reserve System to avoid political interference, a unique structure that conservatives have long criticized.
However, advocates for the CFPB stress its bipartisan support, pointing out that its actions have benefited millions of consumers, particularly marginalized communities. NAACP President Derrick Johnson emphasized that, without the CFPB, vulnerable groups would be more susceptible to financial exploitation.
The ongoing legal battle over the future of the CFPB underscores a larger political struggle over the regulation of financial institutions and consumer rights, with consumer advocates and state attorneys general working to preserve protections against corporate misconduct.
“Consumers, from homeowners to credit card users to student borrowers, have all been protected by the CFPB, and weakening this agency puts consumers and everyday Americans at risk,” said New York Attorney General James. “The Trump administration wants to do away with the CFPB just to give billionaires like Elon Musk and bad actors within big tech and other industries a free pass to prey on everyday people. New Yorkers and all Americans deserve to have strong consumer protections, and that is why I am leading a coalition of attorneys general to defend the CFPB and the employees that make it successful.”
