23 AGs Warn Against Efforts to Defund and Shut Down Consumer Protection Agency 

LANSING – Michigan Attorney General Dana Nessel today joined a coalition of 23 attorneys general to warn against efforts by the Trump Administration and Elon Musk to defund and disband the Consumer Financial Protection Bureau (CFPB). The CFPB is an independent agency that oversees big banks, lenders, credit card companies, and mortgage servicers and ensures companies are following federal consumer protection laws. Since its creation, the CFPB has helped 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 the pockets of consumers nationwide. The coalition argues in an amicus brief (PDF) filed in the U.S. District Court for the District of Maryland that dismantling the CFPB would significantly harm consumers and hamper enforcement of federal consumer protection laws. 

“Shutting down the CFPB would be devastating for the millions of working families it protects from unscrupulous businesses,” Nessel said. “The agency has returned over $20 billion to consumers by holding powerful corporations accountable for illegal and deceitful treatment. The CFPB has fought for Michiganders for years, and we simply cannot afford to lose it.” 

On February 9, the Trump Administration directed the CFPB to stop all its ongoing work and to not begin any new investigations. The CFPB was formed in 2011 following the Great Recession to enforce federal consumer protection laws. Since its creation, the CFPB has worked with state attorneys general to address consumer issues related to banking, student loan servicers, mortgage servicers, auto lending, and other consumer financial matters. The CFPB has also partnered with attorneys general to stop deceptive, unfair, and abusive conduct by companies. As a result of the Trump Administration's actions, the nation's largest banks are no longer being closely watched for compliance with key consumer protections by any federal regulator. 

In their brief, the coalition argues that the Administration’s efforts to destroy the CFPB could prevent consumers from being able to report issues of fraud or deception. The coalition also writes that efforts to shut down the CFPB send a signal that there will be no oversight over big banks and financial institutions, further harming consumers. The attorneys general warn that this may lead to financial institutions loosening their regulatory compliance, as was seen in the years leading up to the financial crisis. 

Attorney General Nessel recently released a video heralding the important work done by the CFPB to inform Michigan residents of the threat facing the Bureau. 

Joining Attorney General Nessel in filing today’s brief are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.

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