Attorney General Anthony G. Brown, along with a coalition of 23 attorneys general, today issued a stern warning against attempts by the Trump administration and Elon Musk to dismantle the Consumer Financial Protection Bureau (CFPB). Established in the wake of the Great Recession in 2011, the CFPB plays a crucial role in supervising major financial entities like banks, lenders, and mortgage servicers, ensuring adherence to federal consumer protection laws.
The coalition filed an amicus brief in the U.S. District Court for the District of Maryland arguing that the proposed defunding and disbandment of the CFPB would pose significant threats to consumer rights and undermine the enforcement of vital consumer protection statutes. Since its inception, the CFPB has been instrumental in securing over $20 billion in returns to consumers, aiding homeowners at risk of foreclosure, and curbing unfair banking practices.
On February 9, the Trump administration issued a directive to halt all ongoing CFPB activities and freeze any new investigations. This move has led to concerns over reduced regulatory oversight, potentially mirroring the lax regulatory environment that contributed to the financial crisis. The coalition’s brief emphasizes that such actions could exacerbate the risks of fraud and financial abuse, disproportionately affecting the most vulnerable groups.
The attorneys general of states including Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia stand with AG Brown in this critical legal challenge.
