Attorney General Charity Clark has aligned with a coalition of 23 states to challenge efforts by the Trump administration and Elon Musk aimed at defunding and dismantling the Consumer Financial Protection Bureau (CFPB). The CFPB, an independent agency established in the wake of the 2008 financial crisis, plays a critical role in monitoring major banks, lenders, credit card companies, and mortgage servicers to ensure compliance with federal consumer protection laws. Since its inception, the CFPB has assisted millions of Americans by preventing foreclosures, eliminating excessive bank fees, and returning over $20 billion to consumers.
In an amicus brief submitted to the U.S. District Court for the District of Maryland, Attorney General Clark emphasized that removing the CFPB would severely impact consumers and weaken enforcement of consumer protection laws. "A healthy marketplace requires consumer trust," stated Clark. "The CFPB...fosters consumer trust and protects both the consumer and the marketplace."
Clark reassured Vermont residents that her office's Consumer Assistance Program remains operational. She encouraged Vermonters to utilize this service for resolving complaints and protecting against scams.
The Trump administration directed on February 9th for the CFPB to cease ongoing activities and halt new investigations. This directive poses significant risks as it leaves major banks without rigorous oversight regarding key consumer protections.
The coalition argues that dismantling the CFPB could hinder consumers from reporting fraud or deception while signaling reduced oversight over financial institutions. The attorneys general warn that this may lead to decreased regulatory compliance among financial entities similar to conditions preceding past financial crises.
Joining Attorney General Clark are attorneys general from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina Oregon Rhode Island Washington Wisconsin as well as from the District of Columbia.