New York Attorney General Letitia James has led a coalition of 23 attorneys general in opposing efforts by the Trump administration and Elon Musk to defund and dismantle the Consumer Financial Protection Bureau (CFPB). The CFPB is an independent agency tasked with overseeing major financial institutions to ensure compliance with federal consumer protection laws. Since its inception, the CFPB has assisted millions of consumers, including homeowners facing foreclosure, and has recovered over $20 billion for consumers nationwide.
Attorney General James stated, "Eliminating the CFPB will hurt everyday people and benefit billionaires like Elon Musk and his friends." She emphasized that the agency's removal would only serve to protect dishonest entities at the expense of working families.
The Trump administration recently directed the CFPB to cease all ongoing activities and refrain from initiating new investigations. Established in 2011 post-Great Recession, the CFPB collaborates with state attorneys general on various consumer issues related to financial services. The recent directive leaves major banks without close federal oversight regarding key consumer protections.
In an amicus brief filed in Maryland's U.S. District Court, Attorney General James and her coalition argue that disbanding the CFPB could impede consumers' ability to report fraud or deception, thereby reducing oversight on large banks and potentially leading back to pre-crisis regulatory laxity.
Attorney General James has worked alongside the CFPB on multiple cases aimed at protecting consumers. In January 2024, she joined forces with the CFPB against companies operating an illegal debt-relief scheme that defrauded over $100 million from consumers. In April 2024, they secured an $811 million judgment against Libre by Nexus for targeting immigrants unfairly. Furthermore, in January 2023, they sued Credit Acceptance Corporation for misleading low-income individuals into accepting high-interest loans.
The coalition supporting today's brief includes attorneys general from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico North Carolina Oregon Rhode Island Vermont Washington Wisconsin as well as Washington D.C.