New York Attorney General Letitia James is leading a coalition of 23 attorneys general in opposing efforts by the Trump administration and Elon Musk to defund and disband the Consumer Financial Protection Bureau (CFPB), a federal agency that oversees banks, lenders, and credit card companies.
In an amicus brief filed in the U.S. District Court for the District of Maryland, James and her colleagues argue that dismantling the CFPB would significantly harm consumers, weaken federal consumer protection laws, and benefit large financial institutions at the expense of everyday Americans.
“Eliminating the CFPB will hurt everyday people and benefit billionaires like Elon Musk and his friends,” James said. “The CFPB has put billions of dollars back in the pockets of Americans by going after predatory lenders, deceptive companies, and slashing junk fees. The only reason to get rid of this watchdog agency is to protect bad actors.”
The CFPB was created in 2011 in response to the Great Recession to enforce consumer protection laws and prevent financial institutions from engaging in deceptive or abusive practices. The agency has helped millions of Americans by stopping unfair banking fees, addressing fraudulent lending practices, and recovering more than $20 billion for consumers.
On February 9, the Trump administration directed the CFPB to halt its investigations, effectively ending federal oversight of major banks. James and her coalition warn that eliminating the CFPB could lead to reduced oversight, increased financial misconduct, and weakened protections for consumers—similar to the deregulation that contributed to the 2008 financial crisis.
The attorneys general also highlight past successes in working with the CFPB, including legal actions that returned millions of dollars to defrauded consumers. These cases include:
- A January 2024 lawsuit against a network of shell companies accused of running an illegal debt-relief enterprise that stole more than $100 million from consumers.
- An April 2024 judgment awarding $811 million against Libre by Nexus, a bond services company accused of deceptive practices targeting immigrants.
- A January 2023 lawsuit against Credit Acceptance Corporation, one of the nation’s largest auto lenders, for misleading thousands of low-income New Yorkers into signing high-interest car loans.
- Legal action against a cash advance company that defrauded 9/11 victims out of money meant for medical and financial aid.
Joining James in filing the brief are attorneys general from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia.
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