Attorney General Neronha joins multistate coalition to defend the Consumer Financial Protection Bureau
PROVIDENCE, R.I. – Attorney General Peter F. Neronha today joined a coalition of 23 attorneys general to warn against efforts by the Trump administration and Elon Musk to defund and disband the Consumer Financial Protection Bureau (CFPB).
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. 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 coalition argues in an amicus brief filed in the U.S. District Court for the District of Maryland that dismantling the CFPB would significantly harm consumers and hamper enforcement of federal consumer protection laws.
“Fraud, scams, and financial crimes are everywhere these days, and this Administration seems to want to make it easier for bad actors to swindle Americans,” said Attorney General Neronha. “Consumer protection is an issue that unites people from all over the political spectrum, as it should. We must protect American consumers from nefarious and predatory individuals and businesses; look no further than the Great Recession of 2008 to understand why. When greed is allowed to flourish without regulation, it can have devastating effects on both the individuals directly affected and the economy as a whole. Americans deserve to know why their government insists on putting their hard-earned money in jeopardy. Because at best, defunding and disbanding the CFPB is shockingly reckless, and at worst it is an enablement tactic.”
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 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 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.
Joining Attorney General Neronha 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, New York, North Carolina, Oregon, Vermont, Washington, Wisconsin, and the District of Columbia.
A sour end to the week for Wall Street as stocks are tanking for the second day in a row. Weak consumer sentiment data and a decline in UnitedHealth stock could be part of the reason. The Dow Jones Industrial Average has been down over 800 points at times, while the Nasdaq has been down close to 300 points during the day. 
