California Attorney General Rob Bonta has joined a coalition of 23 attorneys general in submitting an amicus brief in the case of National Treasury Employees Union v. Vought. This lawsuit challenges actions by the Trump Administration to dismantle the Consumer Financial Protection Bureau (CFPB). Earlier this week, Bonta also submitted an amicus brief in another case concerning the CFPB, Mayor and City Council of Baltimore v. Consumer Financial Protection Bureau.
The attorneys general argue that closing the CFPB would harm consumer protections across the country, leaving state agencies solely responsible for safeguarding consumers from practices currently regulated by the CFPB. "The Trump Administration’s takeover of the CFPB is an effort to destroy the federal agency responsible for protecting American families from being exploited by big banks and payday lenders," said Attorney General Bonta. He added that eliminating this oversight increases risks for consumers and burdens states like California.
Following the 2008 financial crisis, Congress established the CFPB to enforce consumer protection statutes and regulations. For over ten years, it has partnered with state attorneys general and regulators to protect consumers against fraudulent practices.
Recently, actions by the Trump Administration aimed at weakening the CFPB include suspending work, terminating employees, and halting funding from the Federal Reserve. These steps are seen as efforts to close down the agency's programs mandated by federal law.
The brief filed in U.S. District Court for the District of Columbia argues that dismantling the CFPB will irreparably harm consumers and state enforcement efforts, leaving no oversight over large national banks and increasing burdens on state agencies.
Attorney General Bonta joins his counterparts from New York, New Jersey, Washington D.C., Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico North Carolina, Oregon, Rhode Island, Vermont, Washington State and Wisconsin in this legal action.