Raoul, 23 AGs File Second Amicus Brief Supporting CFPB, Say Trump Administration’s Order for CFPB Employees to Stop Working Will Harm Everyday Americans
Chicago – Attorney General Kwame Raoul today joined a coalition of 23 attorneys general in support of federal Consumer Financial Protection Bureau (CFPB) 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 the United States District Court for the District of Columbia 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. This is the second action Attorney General Raoul has taken this week to defend the CFPB.
“The CFPB expanded upon the work of states and federal partners to become the primary agency setting national rules to reign in the unfair and deceptive mortgage lending and servicing that directly led to the Great Recession,” Raoul said. “My office has successfully partnered with the CFPB regularly to protect Illinois consumers. I’m proud to stand with my fellow attorneys general, for the second time this week, to oppose the illegal attempts to dismantle this critical watchdog.”
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. Congress created it in 2011 following the Great Recession and mortgage lending crisis to enforce federal consumer protection laws.
On Feb. 9, the Trump administration directed the CFPB to stop all ongoing work and to not begin any new investigations. In their brief, Raoul and the coalition argue 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. 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. 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.
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 partnered with attorneys general to stop deceptive, unfair and abusive conduct by companies, including joining with Raoul’s office and six other states to bring suit to stop an unlawful debt settlement scheme. The agency also partnered with Attorney General Raoul’s office and other attorneys general in investigating Navient and Nationstar Mortgage, known publicly as Mr. Cooper, for unfair and deceptive conduct in servicing student loans and mortgages respectively.
Today’s action follows a brief filed by Raoul and a group of attorneys general yesterday in support of plaintiffs in a lawsuit filed in federal district court in Maryland to stop the defunding of the CFPB.
Joining Raoul in filing today’s brief are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington and Wisconsin.
