Great Lakes Wire

Michigan Attorney General Dana Nessel has joined a coalition of 23 attorneys general to oppose efforts by the Trump Administration and Elon Musk aimed at defunding and disbanding the Consumer Financial Protection Bureau (CFPB). The CFPB is an independent agency responsible for overseeing banks, lenders, credit card companies, and mortgage servicers to ensure compliance with federal consumer protection laws. Since its establishment, the CFPB has played a significant role in assisting homeowners facing foreclosure, preventing banks from imposing unnecessary fees, and returning over $20 billion to consumers nationwide.

"Shutting down the CFPB would be devastating for the millions of working families it protects from unscrupulous businesses," said Nessel. "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, directives were issued by the Trump Administration instructing the CFPB to halt all ongoing work and refrain from initiating new investigations. Established in 2011 after the Great Recession, the CFPB enforces federal consumer protection laws. It collaborates with state attorneys general on issues related to banking, student loans, mortgages, auto lending, and other financial matters. Additionally, it partners with attorneys general to combat deceptive practices by companies. Following these directives from the Trump Administration, major banks are no longer under close scrutiny regarding key consumer protections by any federal regulator.

In an amicus brief filed in the U.S. District Court for the District of Maryland, the coalition argues that dismantling the CFPB would harm consumers and hinder enforcement of federal consumer protection laws. They caution that efforts to shut down the bureau signal a lack of oversight over large financial institutions which could lead to reduced regulatory compliance similar to what occurred before the financial crisis.

Attorney General Nessel recently released a video emphasizing the critical work performed by the CFPB and informing Michigan residents about threats facing this agency.

Alongside Attorney General Nessel in filing this brief are attorneys general from Arizona, California, Colorado, Connecticut, Delaware, Washington D.C., Hawaii, Illinois, Maine Maryland Massachusetts Minnesota Nevada New Jersey New Mexico New York North Carolina Oregon Rhode Island Vermont Washington Wisconsin.