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23 AGs File Second Amicus Brief Supporting CFPB, Say Trump Administration’s Order for CFPB Employees to Stop Working Will Harm Americans
BALTIMORE, MD – Attorney General Anthony G. Brown today joined a coalition of 23 attorneys general to keep the Consumer Financial Protection Bureau (CFPB) functional by supporting federal employees who were told by the Trump administration and Elon Musk to stop working on cases investigating deceptive and abusive conduct by companies. The coalition submitted an amicus brief in the United States District Court for the District of Columbia in support of CFPB workers who have helped return more than $20 billion to defrauded consumers, slashed junk fees, and stopped predatory auto and mortgage lenders. 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. Earlier this week, Attorney General Brown defended the CFPB in a different amicus brief.
“The Consumer Financial Protection Bureau protects Marylanders from businesses’ deceptive practices that can cost them significant amounts of money,” said Attorney General Brown. “Maryland consumers cannot afford to lose this critical independent agency.”
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 and mortgage lending crisis 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 its brief, the coalition argues that the administration’s efforts to destroy the CFPB could prevent consumers from reporting issues of fraud or deception. The coalition also writes that efforts to shut down the CFPB would significantly reduce oversight of big banks, 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.
In filing today’s brief, Attorney General Brown joins the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawai‛i, Illinois, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.
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