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James Fights Trump’s CFPB Shutdown, Protecting Consumers
NEW YORK – New York Attorney General Letitia James is leading a furious legal battle against a blatant attempt to gut the Consumer Financial Protection Bureau (CFPB). James, alongside 23 other Attorneys General, filed a second amicus brief this week in National Treasury Employees Union v. Russell Vought, fighting a directive from the Trump administration – reportedly influenced by Elon Musk – to effectively shut down the agency responsible for protecting everyday Americans from predatory financial practices.
The move, a thinly veiled attempt to appease big banks and tech billionaires, threatens to unravel over a decade of consumer protection work. Since its creation in 2011 following the Great Recession, the CFPB has clawed back over $20 billion for defrauded consumers, cracked down on exorbitant junk fees, and halted the predatory lending schemes that crippled families. Now, that progress is on the line, with the nation’s largest financial institutions facing reduced scrutiny – a situation eerily reminiscent of the conditions that led to the 2008 financial crisis.
“Consumers, from homeowners to credit card users to student borrowers, have all been protected by the CFPB, and weakening this agency puts consumers and everyday Americans at risk,” Attorney General James stated bluntly. “The Trump administration wants to do away with the CFPB just to give billionaires like Elon Musk and bad actors within big tech and other industries a free pass to prey on everyday people. New Yorkers and all Americans deserve to have strong consumer protections, and that is why I am leading a coalition of attorneys general to defend the CFPB and the employees that make it successful.”
This isn’t James’s first stand against attacks on the CFPB. Earlier this week, she co-led another coalition in the case of Baltimore v. CFPB, demonstrating a consistent commitment to safeguarding the agency’s independence. The timing of the Trump administration’s directive, issued February 9th, is particularly alarming, effectively halting ongoing investigations and preventing the initiation of new ones. The result? A free pass for financial institutions to potentially skirt consumer protection laws without federal oversight.
James’s office highlighted a series of recent successful collaborations with the CFPB, showcasing the tangible impact of the agency’s work. In January 2024, a multistate coalition led by James and the CFPB sued a network of shell companies for operating an illegal debt-relief scam, recovering over $100 million for victims. In April 2024, they secured an $811 million judgment against Libre by Nexus for targeting immigrants with deceptive bond services. And in January 2023, James and the CFPB filed suit against Credit Acceptance Corporation (CAC) for fleecing low-income New Yorkers with high-interest auto loans. These cases, and countless others, demonstrate the crucial role the CFPB plays in holding predatory companies accountable.
The amicus brief filed by James and her colleagues argues that the Trump administration’s actions will stifle consumers’ ability to report fraud and deception, while simultaneously eroding oversight of the financial industry. The warning is clear: dismantling the CFPB isn’t just bad policy, it’s a reckless gamble with the financial well-being of millions of Americans. The fight is far from over, but James is vowing to continue leading the charge to protect consumers from the greed of corporations and the political machinations of those who enable them.
Key Facts
- State: New York
- Agency: NY AG
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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