Attorney General Kwame Raoul has joined a coalition of 23 attorneys general to defend the Consumer Financial Protection Bureau (CFPB) against efforts by the Trump administration and Elon Musk to defund and dismantle it. The CFPB, an independent agency, is responsible for overseeing big banks, lenders, credit card companies, and mortgage servicers while ensuring compliance with federal consumer protection laws. In an amicus brief filed in the U.S. District Court for the District of Maryland, Raoul and his colleagues argue that dismantling the CFPB would harm consumers and hinder enforcement of these laws.
“Since its creation, the Consumer Financial Protection Bureau has assisted 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 consumers nationwide,” Raoul stated. “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. My office has partnered with the CFPB regularly to protect Illinois consumers, and I’m proud to stand with my fellow attorneys general against any attempts to dismantle this critical watchdog.”
On February 9th, directives from the Trump administration instructed the CFPB to halt all ongoing work and refrain from initiating new investigations. Raoul and his coalition argue that such actions could prevent consumers from reporting fraud or deception issues. They warn that shutting down the CFPB would significantly reduce oversight over large banks, potentially harming consumers further. This lack of oversight may lead financial institutions to relax regulatory compliance as seen before past financial crises.
The CFPB was established in 2011 following the Great Recession with a mandate to enforce federal consumer protection laws. Since then, it has collaborated with state attorneys general on various consumer issues involving banking, student loans, mortgages, auto lending, among others. The agency has worked alongside Attorney General Raoul’s office in Illinois as well as other state attorneys general across multiple cases addressing deceptive practices by companies.
Joining Attorney General Raoul in filing today’s brief are attorneys general from Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Michigan Minnesota Nevada New Jersey New Mexico New York North Carolina Oregon Rhode Island Vermont Washington Wisconsin.