A coalition of Democratic state attorneys general has sued the Trump administration to stop the complete defunding of the Consumer Financial Protection Bureau (CFPB).
In the lawsuit, the attorneys general pointed out that Russ Vought, the acting CFPB director, is refusing to request any funding from the Federal Reserve. As a result, the lawsuit stated, the CFPB will run out of money in January and not be able to operate.
The lawsuit seeks a court order preventing the administration from completely defunding CFPB.
The attorneys general argued the CFPB has a legal obligation to provide states with consumer complaints, which cannot be accomplished without the necessary funds, and they added the elimination of CFPB funding violated the Separation of Powers principle, as the agency was established by Congress and cannot be unilaterally dismantled by the Executive Branch.
The attorneys general behind the lawsuit represent 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, and Wisconsin.
“This is yet another attempt by the Trump Administration to dismantle and destroy the federal government, laws and Congress be damned,” said Connecticut Attorney General William Tong. “And it is yet another blow to American families and consumers who would be less protected against cheaters and scammers and unfair business practices. We’re suing to defend these bedrock consumer protections.”
There is nothing preventing each of these states from establishing and funding their own complaint bureaus. They could form a coalition for their group fund a complaint bureau. The US taxpayers do not need/want to continue to fund multiple agencies that provide the same service. Democrat administrations have often defunded programs that US taxpayers DEMANDED.
This is a very un-American, anti-capitalistic entity, and needs to be defunded!
You’re both wrong, Trumpers. The president does not have the authority to dismantle this important consumer protection bureau. We must all stand up for our democracy / republic against this man who thinks he’s a dictator!!
Doesn’t matter what party it is if they’re not America first there’s no reason to even support them or any of their actions
The CFPB oversees the financial sector and has saved consumers literally billions of dollars. This is an independent agency – is not at all partisan – and serves the people. It keeps businesses from ripping off regular Americans. This is why the republicans want to tank it. They don’t like to be told they can’t rip you off.
The Trump Administration is engaged in reckless (not thoughtful) deregulation of the financial industry that will lead to a financial collapse equal to or worse than the 2008 recession. The CFPB is an important check to prevent scams and reckless investing. A reasonable case can be made to slightly modify a few of its regulations but, that is it. The CFPB should be fully funded.
CFPB was installed as a money grab from penalizing title and mortgage companies. All you need to know is it was created by Barney Frank and Elizabeth Warren.