Press Release: 2025-02-21 00:00:00

AG Campbell Joins Multistate Coalition To Defend Consumer Financial Protection Bureau

 

23 AGs Warn Against the Trump Administration’s Efforts to Defund and Shut Down Critical Consumer Watchdog Agency

FOR IMMEDIATE RELEASE:

2/20/2025

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Sabrina Zafar , Deputy Press Secretary

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BOSTON — Attorney General Andrea Joy Campbell today joined a coalition of 23 state attorneys general to warn against efforts by the Trump Administration and Elon Musk to defund and disband the Consumer Financial Protection Bureau (CFPB), an independent agency that ensures companies follow federal consumer protection laws, overseeing big banks, lenders, credit card companies, and mortgage servicers.  

In an amicus brief filed in the U.S. District Court for the District of Maryland, the coalition argues that dismantling the CFPB would significantly harm consumers and hamper enforcement of federal consumer protection laws. Since its creation, the CFPB has helped millions of Americans by helping homeowners facing foreclosure stay in their homes, stopping banks from charging junk fees, and returning more than $20 billion to the pockets of consumers nationwide. 

“The CFPB serves as a beacon for consumer protection and economic justice, working to lower costs, alleviate student debt, and more. They have been an important partner to my office as we pursue consumer protection cases on behalf of Massachusetts residents,” said AG Campbell. “I continue to support the vital mission of CPFB, especially at a time when families across the country are struggling with sky-high costs of living.”  

On February 9, the Trump Administration directed the CFPB to stop all its ongoing work and to not begin any new investigations.  

In their 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 very large 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. 

The CFPB was formed in 2011 following the Great Recession 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. 

Joining AG Campbell in filing today’s brief are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia.