New York Attorney General Letitia James has joined forces with 22 other attorneys general to oppose efforts by the Trump administration and billionaire Elon Musk to dismantle the Consumer Financial Protection Bureau (CFPB).

The coalition argues that defunding and disbanding the CFPB would significantly harm consumers by weakening enforcement of federal consumer protection laws.

Eliminating the CFPB will hurt everyday people and benefit billionaires like Elon Musk and his friends, James said in a news release. The CFPB has put billions of dollars back in the pockets of Americans by going after predatory lenders, deceptive companies, and slashing junk fees.

"The only reason to get rid of this watchdog agency is to protect bad actors. Working families need the CFPB, especially as rising prices are making it hard to make ends meet and put food on the table," she said.

The CFPB, an independent agency established in 2011 following the Great Recession, plays a crucial role in overseeing major financial institutions such as banks, lenders, credit card companies, and mortgage servicers. It ensures compliance with federal laws designed to protect consumers from unfair and deceptive financial practices. Since its inception, the CFPB has helped millions of Americans by preventing foreclosure, eliminating junk fees, and returning over $20 billion to consumers.

James and her coalition have filed an amicus brief in the U.S. District Court for the District of Maryland, arguing that eliminating the CFPB would leave consumers vulnerable to financial exploitation. They warn that removing this watchdog agency would primarily benefit billionaires and large corporations while harming working families.

Fewer regulations governing banks, lenders

The Trump administrations recent directive, issued on February 9, ordered the CFPB to halt all ongoing investigations and refrain from launching new ones. The attorneys general caution that without the CFPBs oversight, the nations largest banks and financial institutions could operate with fewer regulations, potentially leading to the kind of risky behavior that contributed to the 2008 financial crisis.

James pointed to recent cases she has worked with with the CFPB, including:

• A January 2024 lawsuit against a network of shell companies accused of running an illegal debt-relief scheme that defrauded consumers of over $100 million;
• An $811 million judgment against Libre by Nexus for misleading and exploiting immigrant families;
• Actions against Credit Acceptance Corporation for deceptive auto loans; and
• A cash advance company that defrauded 9/11 victims.

JoiningJames in filing the amicus brief are the attorneys general from 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.