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Lansing, Michigan – Michigan’s Attorney General, Dana Nessel, has aligned with a group of 23 attorneys general in a robust effort to ensure the operational continuity of the Consumer Financial Protection Bureau (CFPB). This action responds to instructions from the Trump administration and business billionaire Elon Musk, which would stop the CFPB’s continuous investigations into predatory and misleading corporate behavior.
Representing a diverse array of states, the alliance filed an amicus brief in National Treasury Employees Union v. Russell Vought. This brief helps CFPB staff members who have helped consumers misled or injured by financial institutions to have their over $20 billion returned. The brief emphasizes how important the CFPB is in eradicating exploitative tactics in auto and mortgage lending as well as in eliminating excessive junk fees.
Since its inception in 2011 after the mortgage crisis and the ensuing Great Recession, the CFPB has been pivotal in enforcing federal consumer protection laws. Among other areas, the bureau closely collaboratively oversees and corrects problems in banking, student loans, mortgages, and car lending with state attorneys general. Stopping fraudulent, unjust, and violent practices by some financial companies has been much supported by this cooperation.
“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.”
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The amicus brief claims that the Trump administration’s plan to destroy the CFPB not only jeopardizes consumer welfare but also reduces control of major financial players, hence returning to the slack regulatory environment that helped to cause earlier financial crises. The attorneys general are concerned that less control could let financial institutions relax their commitment to consumer protection rules, therefore endangering the financial stability of millions of Americans.
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This legal action marks the second initiative this week by Attorney General Nessel to defend the CFPB’s mandate and operational integrity. Attorneys general of states including 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 join her in this legal posture. This group effort emphasizes a national commitment to keep close control of the financial industry, therefore safeguarding consumers against unethical behavior.