Golden State Today

California Attorney General Rob Bonta has aligned with a group of 23 attorneys general to submit an amicus brief in the case Mayor and City Council of Baltimore v. Consumer Financial Protection Bureau. This legal action challenges the Trump Administration's efforts to dismantle the Consumer Financial Protection Bureau (CFPB). The coalition argues that eliminating the CFPB would severely impact consumer protection nationwide, leaving state agencies solely responsible for safeguarding consumers.

Attorney General Bonta stated, "The CFPB was created to protect consumers from being taken advantage of by corporations. As the backbone of federal consumer financial protections, the CFPB is a force multiplier for California’s consumer protection efforts, working to protect consumers from fraud, abuse, and unfair business practices and returning over $20 billion to Americans since its creation."

The Trump Administration has recently implemented measures such as suspending work across the agency and halting additional funding from the Federal Reserve. These actions are seen as attempts to permanently close down the agency, affecting programs mandated by federal law.

The attorneys general argue that closing down the CFPB will cause irreparable harm to consumers and significantly increase the burden on state agencies. They emphasize that without oversight, large national banks could operate with reduced regulatory compliance. The loss of the CFPB's consumer-complaint system is highlighted as a significant detriment, given its role in managing approximately 25,000 complaints weekly.

Furthermore, Attorney General Bonta noted that since 2022, California has referred nearly 4,000 consumers to the CFPB for assistance best provided by the bureau. The removal of oversight on large financial institutions like JPMorgan and Wells Fargo could lead to weakened compliance with consumer financial-protection laws.

Joining Bonta in filing this brief are attorneys general from New York, New Jersey, Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Rhode Island, Vermont Washington D.C., Washington State and Wisconsin.