Arizona Joins Legal Battle Against Freezing of Consumer Watchdog Bureau
Arizona Attorney General Kris Mayes has allied with 23 other state attorneys general to challenge a decision by the Trump administration to halt the operations of the Consumer Financial Protection Bureau (CFPB).
Created in the wake of the Great Recession, the CFPB’s mission is to oversee major financial institutions, including banks and lenders, and to address consumer complaints related to student loans, mortgage services, and banking practices. The bureau also collaborates with state attorneys general to combat unfair and deceptive business practices, as noted by the Arizona attorney general’s office.
In a 2023 report, the CFPB highlighted its impact, stating it had secured $17.5 billion for consumers through monetary compensation, principal reductions, canceled debts, and other relief efforts. Furthermore, the bureau imposed $4 billion in civil penalties on companies and individuals found in violation of the law.
Richie Taylor, spokesperson for the Arizona attorney general’s office, expressed concerns over the White House’s decision, suggesting it might weaken financial institutions’ adherence to regulations. “If the CFPB is ultimately defunded or ended, it’ll really hurt in the fight that we are always engaged in at the AG’s office to protect consumers from fraud and abuse,” Taylor remarked.
On February 9, acting CFPB Director Russell Vought ordered a halt to all ongoing operations and investigations within the bureau. In response, the coalition of attorneys general filed a briefing, asserting that this freeze could cause “irreparable harm” by reducing oversight of large banks and hindering efforts to combat financial crimes.
Despite these challenges, Taylor affirmed that Kris Mayes remains committed to collaborating with other attorneys general. He emphasized, “We’re going to take everything on a case-by-case basis and make the best decision for the people of Arizona. We’re working closely with other attorneys general to fight back against the unconstitutional and illegal actions that Trump and Musk may be taking.”
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