New York Attorney General Letitia James has co-led a coalition of 23 attorneys general to support the Consumer Financial Protection Bureau (CFPB) and its employees. This action is in response to directives from the Trump administration and Elon Musk, instructing federal employees to cease investigations into deceptive and abusive practices by companies. The coalition submitted an amicus brief in National Treasury Employees Union v. Russell Vought, backing CFPB workers who have been instrumental in returning over $20 billion to defrauded consumers.
Attorney General James emphasized the importance of the CFPB, stating, “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.” She further criticized attempts by the Trump administration to undermine the agency for benefiting billionaires like Elon Musk.
The CFPB was established in 2011 after the Great Recession to enforce federal consumer protection laws. It collaborates with state attorneys general on issues related to banking, loans, and other financial matters. On February 9th, a directive from the Trump administration halted ongoing work at the CFPB and barred new investigations. This move has left major banks without close oversight for compliance with consumer protections.
The coalition argues that dismantling the CFPB would prevent consumers from reporting fraud or deception issues and reduce oversight of big banks. They warn this could lead financial institutions to relax regulatory compliance similar to pre-2008 financial crisis levels.
Attorney General James has previously partnered with the CFPB on various actions against companies exploiting consumers. Notable cases include suing shell companies for illegal debt-relief operations swindling over $100 million and winning an $811 million judgment against Libre by Nexus for deceptive tactics targeting immigrants.
The attorneys general joining James include representatives 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 District Columbia.