Attorney General Kwame Raoul led a group of 23 attorneys general in calling on the Consumer Financial Protection Bureau (CFPB) to scale back its proposed strategic plan, according to an April 17 announcement. The coalition urged CFPB Acting Director Russell Vought not to move forward with measures that would significantly reduce staffing, limit enforcement activities, and weaken consumer protections.
The attorneys general argue that the CFPB is the only federal agency solely focused on protecting consumers in financial matters. They say that cutting staff and enforcement resources could leave consumers more vulnerable at a time when many Americans have faced financial fraud or scams. “The CFPB was created in the wake of the most devastating world financial crisis since the Great Depression. Its very mission was to ensure that the type of fraud, abuse and financial exploitation that led to the financial crisis would not be repeated, and it was tasked with partnering with states in this extremely important endeavor,” Raoul said. He added, “It is unconscionable that this administration is attempting to restrict the ability of the federal government to effectively protect its consumers. With agencies like the CFPB stepping back from its responsibilities, states will be forced to do more with less, bad actors will get a free pass and consumers will pay the price.”
The letter from Raoul and his colleagues outlines concerns about proposed reductions such as shrinking a team of 72 supervision staff down to one person within key oversight offices at CFPB. They warn this would impact supervision over covered entities and result in less relief for consumers harmed by unfair practices.
Since its creation after Congress responded to the 2008 financial crisis, over $21 billion has been returned as consumer relief through CFPB actions. The attorneys general highlight how recent steps by both current leadership and prior attempts under former President Trump have sought major workforce cuts at CFPB.
Raoul’s office has advocated for vulnerable groups including workers, immigrants, seniors; handled thousands of consumer complaints annually; aimed to protect consumers while promoting safer communities; extended advocacy across Illinois; partnered with law enforcement for crime victim support; promoted open government; and offered services such as complaint filing for consumer fraud and civil rights issues according to its official website.
Joining Raoul are attorneys general from Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon,Vermont,V irginia ,Washington ,and Wisconsin .
Looking ahead,the coalition warns that if these changes go into effect,the burden on state governments may increase,and fewer resources may be available nationwide for addressing future incidents involving consumer harm.
