Today, Attorney General Keith Ellison, along with a coalition of 22 other attorneys general, voiced their opposition to efforts by the Trump administration and Elon Musk to defund and dismantle the Consumer Financial Protection Bureau (CFPB). The coalition submitted an amicus brief in the U.S. District Court for the District of Maryland arguing that eliminating the CFPB would significantly harm consumers and weaken enforcement of federal consumer protection laws.
The CFPB is an independent agency responsible for overseeing major financial institutions like banks, lenders, credit card companies, and mortgage servicers. Since its inception, it has assisted millions of Americans by preventing foreclosures, stopping excessive bank fees, and returning over $20 billion to consumers.
Attorney General Ellison emphasized the importance of the CFPB: “The Consumer Financial Protection Bureau was founded in the wake of the 2008 foreclosure crisis to stand up to folks like big banks, payday lenders, and credit card companies when they do wrong by the American people,” he stated. He expressed his commitment to defending the agency against attempts by "the Trump administration" to undermine it.
On February 9th, actions taken by the Trump administration directed the CFPB to cease ongoing work and halt new investigations. This decision means that large banks are no longer under close scrutiny for compliance with consumer protections from any federal regulator.
In their brief for Mayor and City of Baltimore v. CFPB, Ellison and his colleagues argue that shutting down the bureau could hinder consumers from reporting fraud or deception issues. They warn that reduced oversight could lead financial institutions to relax regulatory compliance standards reminiscent of those preceding past financial crises.
Established in 2010 as part of Dodd-Frank reforms after the Great Recession, Congress and President Obama tasked the CFPB with providing federal oversight over non-bank entities for the first time. It has since collaborated with state attorneys general on various consumer financial matters including banking issues and deceptive business practices.
Joining Attorney General Keith Ellison in this legal action are attorneys general from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan Nevada New Jersey New Mexico New York North Carolina Oregon Rhode Island Vermont Washington Wisconsin as well as representatives from Washington D.C.