NEW YORK – New York Attorney General Letitia James today co-led 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. Attorney General James and the coalition submitted an amicus brief in National Treasury Employees Union v. Russell Vought 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 James co-led a coalition to defend the CFPB in another case, Baltimore v. CFPB.

“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,” said Attorney General James. “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.”

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. On February 9, the Trump administration directed the CFPB to stop all its ongoing work and not to begin any new investigations. 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 their brief, Attorney General James and the coalition argue 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 2008 financial crisis.

Attorney General James has partnered with the CFPB on several actions to protect consumers and hold companies accountable. In January 2024, Attorney General James, the CFPB, and a multistate coalition sued a web of related shell companies for running an illegal debt-relief enterprise and swindling consumers out of more than $100 million. In April 2024, Attorney General James, the CFPB, and a multistate coalition won an $811 million judgment against a bond services company, Libre by Nexus, for unfairly targeting immigrants and their families with deceptive and abusive tactics. In January 2023, Attorney General James and the CFPB sued one of the nation’s largest auto lenders, Credit Acceptance Corporation (CAC), for deceiving thousands of low-income New Yorkers into signing high-interest car loans. The CFPB and the Office of the Attorney General (OAG) also sued a cash advance company for defrauding 9/11 victims out of money intended to help cover their medical costs, lost income, and other critical needs. 

Joining Attorney General James in filing today’s brief are the attorneys general of 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.