PHOENIX, Ariz. — Attorney General Kris Mayes has joined a coalition of 23 state attorneys general in opposing efforts by the Trump administration and Elon Musk to defund and disband the Consumer Financial Protection Bureau (CFPB) — a critical federal agency tasked with protecting American consumers from predatory financial practices.
“The Consumer Financial Protection Bureau has been a crucial safeguard for Arizonans and all Americans, holding big banks and lenders accountable while putting billions of dollars back in consumers’ pockets,” said Attorney General Mayes. “Dismantling the CFPB would be a gift to financial institutions that prey on working families, making it easier for them to hike fees, deceive borrowers, and evade oversight. The actions of the Trump-Musk administration put Arizonans at greater risk of fraud, abuse, and financial exploitation.”
Coalition Pushes Back Against CFPB Dismantling
The coalition filed an amicus brief in the U.S. District Court for the District of Maryland, arguing that dismantling the CFPB would severely harm consumers and obstruct the enforcement of critical federal consumer protection laws.
Since its founding in 2011 in response to the Great Recession, the CFPB has:
- Returned over $20 billion to consumers harmed by unfair financial practices
- Protected homeowners from foreclosure
- Cracked down on junk fees charged by banks and lenders
- Monitored major banks, mortgage servicers, credit card companies, and student loan servicers for compliance with consumer protection laws
The attorneys general argue that eliminating the CFPB would undermine these protections, leaving millions of Americans vulnerable to financial exploitation.
Administration Halts CFPB Operations
On February 9, the Trump administration issued a directive ordering the CFPB to cease all ongoing investigationsand halt any new enforcement actions. The move effectively neuters the agency’s ability to regulate big banks and protect consumers from fraudulent or abusive practices.
As a result, the largest banks in the U.S. are now operating without close federal oversight, raising concerns that financial institutions may revert to riskier practices similar to those that triggered the 2008 financial crisis.
States Warn of Increased Financial Risk to Consumers
The coalition of attorneys general argues that dismantling the CFPB would:
- Reduce protections for homeowners, borrowers, and students
- Limit consumers’ ability to report fraud or deceptive practices
- Allow large banks and financial institutions to operate with less oversight
- Increase the risk of another financial crisis
“History has shown us what happens when financial institutions operate without proper oversight,” Mayes added. “We cannot afford to repeat the mistakes that led to the last financial meltdown.”
Broad Multistate Support
Joining Attorney General Mayes in the amicus brief are the attorneys general of:
- California
- Colorado
- Connecticut
- Delaware
- Hawaii
- Illinois
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Nevada
- New Jersey
- New Mexico
- New York
- North Carolina
- Oregon
- Rhode Island
- Vermont
- Washington
- Wisconsin
- District of Columbia
The attorneys general are urging the court to block the Trump administration’s attempt to disband the CFPB and preserve its role as a critical protector of consumer rights.
The case is expected to have far-reaching implications for the future of federal consumer protection in the U.S.
