Great Lakes Wire

Michigan Attorney General Dana Nessel has aligned with a group of 23 attorneys general to ensure the continued operation of the Consumer Financial Protection Bureau (CFPB). This move supports federal employees who were advised by the Trump administration and Elon Musk to cease their 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 credited with recovering over $20 billion for defrauded consumers.

"The CFPB has been a tremendous watchdog, protecting Americans from deceptive fees, predatory loans, and shady financial schemes that drain money from hard-working families," Nessel stated. "Without this crucial agency, tens of billions of dollars would have never been returned to defrauded consumers."

On February 9, directives from the Trump administration instructed the CFPB to halt all ongoing work and refrain from initiating new investigations. The bureau was established in 2011 post-Great Recession to enforce consumer protection laws. It has collaborated with state attorneys general on various consumer issues related to banking and lending.

The coalition's brief contends that dismantling the CFPB could hinder consumers' ability to report fraud or deception issues. It warns that reducing oversight might lead financial institutions to relax regulatory compliance, reminiscent of pre-financial crisis conditions.

Joining Nessel are attorneys general from states including Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island Vermont Washington Wisconsin as well as the District of Columbia.