James Leads Push Against CFPB Shutdown

New York – New York Attorney General Letitia James today co-led a coalition of 23 attorneys general to fight the Trump administration and Elon Musk’s efforts to defund and dismantle the Consumer Financial Protection Bureau (CFPB). The CFPB, an agency vital to consumer financial oversight, has returned over $20 billion to consumers since its inception.

In a bold move, Attorney General James argues in a brief that dismantling the CFPB would severely hurt consumers and weaken federal protection laws. ‘Eliminating the CFPB will hurt everyday people and benefit billionaires like Elon Musk,’ she stated. ‘The CFPB has returned billions to Americans by targeting predatory lenders and deceptive companies.

The administration’s recent directive to halt all CFPB operations raises alarms as it leaves key consumer protections unenforced, allowing big banks to skirt regulations. This coalition warns that shutting down the CFPB could lead to financial institutions weakening their compliance, echoing pre-crisis scenarios.

Attorney General James has a history of partnership with the CFPB, including suing shell companies for illegal debt-relief operations, winning judgments against bond services companies, and protecting 9/11 victims from cash advance fraud. ‘My office is leading this coalition to protect the agency that has protected all of us,’ she emphasized.

The coalition’s brief also highlights the CFPB’s role in consumer protection, noting its importance in today’s economic climate where rising prices strain families’ finances. The AGs warn that the administration’s actions could undermine the ability of consumers to report fraud or deception.

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