Attorney General Nessel Joins Coalition to Keep the Consumer Financial Protection Bureau Working

LANSING – Michigan Attorney General Dana Nessel 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 National Treasury Employees Union v. Russell Vought (PDF) 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. This is the second action this week by Attorney General Nessel to defend the CFPB. 

“The CFPB has been a tremendous watchdog, protecting Americans from deceptive fees, predatory loans, and shady financial schemes that drain money from hard-working families,” Nessel said. “Without this crucial agency, tens of billions of dollars would have never been returned to defrauded consumers. Michiganders deserve a champion that fights for them. I will continue to stand with Americans across our nation to ensure the CFPB remains in their corner.”     

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 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 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. 

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

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