Attorney General Ellison defends CFPB from attempt to dismantle it

Joins 22 other AGs in warning against efforts to defund and shutter the Consumer Financial Protection Bureau

February 20, 2025 (SAINT PAUL)   — Today, Attorney General Keith Ellison and a coalition of 22 other attorneys general warned against efforts by the Trump administration and Elon Musk to defund and disband the Consumer Financial Protection Bureau (CFPB). 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. 

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 Consumer Financial Protection Bureau was founded in the wake of the 2008 foreclosure crisis to stand up to folks like big banks, payday lenders, and credit card companies when they do wrong by the American people,” said Attorney General Ellison. “It can be next to impossible for everyday Americans to stand up for themselves when they are scammed, cheated, or harmed by a large financial business with deep pockets. The CFPB is one of the few institutions working to level that playing field, hold powerful bad actors accountable, and stand up for hardworking people when they’ve been ripped off. I was proud to vote for the creation of the CFPB in Congress and I've fiercely defended it ever since. I won't stand by and let the Trump administration eviscerate it and put the scammers and grifters back in charge of our economy."  

On February 9, the Trump administration directed the CFPB to stop all its ongoing work and to not begin any new investigations. 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, filed in Mayor and City of Baltimore v. CFPB, Attorney General Ellison and the coalition argue that the Trump 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.

Congress and President Obama created the CFPB in 2010 as part of the Dodd-Frank reforms, following the Great Recession and foreclosure crisis, to provide federal oversight of non-bank entities for the first time. 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.

Joining Attorney General Keith Ellison in filing today’s brief are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia.