Golden State Today

California Attorney General Rob Bonta has announced his participation in a coalition of 23 attorneys general submitting an amicus brief in the case National Treasury Employees Union v. Vought. This lawsuit challenges actions by the Trump Administration aimed at dismantling the Consumer Financial Protection Bureau (CFPB). Earlier this week, Bonta filed another amicus brief in Mayor and City Council of Baltimore v. Consumer Financial Protection Bureau, asserting that closing the CFPB would severely harm consumer protections nationwide.

"The Trump Administration’s takeover of the CFPB is an effort to destroy the federal agency responsible for protecting American families from being exploited by big banks and payday lenders," stated Attorney General Bonta. "Eliminating the only federal agency with oversight over big banks puts everyday consumers at higher risk for financial losses, and places higher demands on states like California."

The creation of the CFPB was a response to failures observed during the 2008 financial crisis when federal regulators did not adequately address consumer protection issues. For over ten years, the CFPB has been instrumental in enforcing federal consumer protection laws and working alongside state attorneys general to prevent fraudulent practices.

Recently, actions by the Trump Administration have aimed to weaken the CFPB's capabilities. These include suspending work across the agency, terminating probationary employees, and deciding against drawing additional funds from the Federal Reserve. The attorneys general argue that these steps could permanently shut down essential programs mandated by law.

In their filing with the U.S. District Court for the District of Columbia, they contend that dismantling the CFPB will lead to irreparable harm to consumers and significantly increase burdens on state agencies tasked with consumer protection. The absence of partnership with CFPB would affect complaint sharing, training provision, joint investigations, and litigation efforts.

Attorney General Bonta is joined in this action by his counterparts from New York, New Jersey, Washington D.C., Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland Massachusetts Michigan Minnesota Nevada New Mexico North Carolina Oregon Rhode Island Vermont Washington Wisconsin.