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NEW JERSEY – New Jersey Attorney General Matthew J. Platkin and New York Attorney General Letitia James have co-led a coalition of 23 attorneys general to oppose efforts by the Trump Administration and Elon Musk aimed at dismantling and defunding the Consumer Financial Protection Bureau (CFPB). In an amicus brief filed in the U.S. District Court for the District of Maryland, the coalition asserts that shutting down the CFPB—an agency created to oversee big banks, lenders, and mortgage servicers—would put consumers at grave risk and curb effective enforcement of federal consumer protection laws.
Formed in 2011, the CFPB was established after the Great Recession to enhance oversight of crucial financial markets and shield Americans from abusive and predatory practices. Its key accomplishments include:
On February 9, the Trump Administration directed the CFPB to cease all ongoing investigations and avoid initiating any new ones. Critics say this order hampers the bureau’s ability to monitor large financial institutions, including the nation’s biggest banks, diminishing checks on potential misconduct.
The coalition’s brief stresses:
Joining Attorney General Platkin’s initiative are attorneys general from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia. The coalition highlights that defanging the CFPB abruptly would create a regulatory vacuum, eliminating crucial oversight for financial institutions and leaving states with fewer tools to protect consumers effectively.
“Through an unelected billionaire, President Trump is attempting to destroy a critical watchdog that has saved the homes of New Jerseyans, returned hard-earned money to the pockets of our residents, and fought to protect consumers from the abusive conduct of major corporations,” said Attorney General Platkin. “The Trump Administration has made clear that its priority is to protect the wealthiest and most powerful interests in our country, not the rights of consumers. We are fighting back against this clear attempt to gut consumer protections while elevating bad actors over the American people.”
By filing this brief, the states aim to defend the CFPB’s autonomy, preserve robust consumer protections, and preserve confidence in the nation’s financial infrastructure. As legal proceedings continue, the attorneys general underscore the urgent need to sustain the agency’s critical role in ensuring fair treatment and transparency for consumers in the U.S. financial system.