Maryland Attorney General Joins Coalition Urging CFPB to Reconsider Plan That Could Harm Consumers

Maryland Attorney General Anthony G. Brown has joined a coalition of 23 other state attorneys general in a strong appeal to the Consumer Financial Protection Bureau (CFPB) to abandon a proposed strategic plan. The coalition argues that the plan, if implemented, would significantly diminish the agency’s capacity to protect consumers, citing potential reductions in staffing, weakened oversight of financial institutions, and a less effective enforcement approach. This move by the attorneys general aims to ensure the CFPB continues its vital role in safeguarding individuals and the broader financial market from harmful practices.

The attorneys general have expressed concerns that the CFPB’s proposed strategic plan could lead to substantial staff cuts and a weakening of its supervisory responsibilities. The CFPB was established in the wake of the 2008 financial crisis with a singular mission to protect consumers in the financial sector. Since its inception, the agency has facilitated over $21 billion in relief for consumers through its enforcement and supervision activities. However, the current proposal outlines a significant reduction in the workforce dedicated to supervision, which critics argue would severely impair the agency’s ability to monitor financial entities.

The coalition’s letter highlights that such workforce reductions could lead to the CFPB effectively stepping back from several of its constitutionally mandated duties. This comes at a time when a significant portion of the U.S. adult population has reported experiencing financial fraud or scams. The attorneys general also point to recent actions by the CFPB that have rescinded billions of dollars in previously sought consumer relief, suggesting a shift in the agency’s priorities. They contend that this proposed strategic plan would exacerbate this trend, leaving consumers more vulnerable.

Furthermore, the coalition argues that the CFPB’s role is beneficial to financial institutions by fostering fair competition, providing clarity on compliance requirements, and offering confidential resolutions for legal breaches. The proposed plan, however, suggests a realignment of the organization and the elimination of roles deemed “non-essential,” which the attorneys general believe will result in fewer staff available to carry out the agency’s statutory obligations. This move is seen as undermining the CFPB’s requirement to supervise financial institutions effectively.

The attorneys general are also concerned that the plan’s emphasis on minimizing “duplicative enforcement” and its deregulatory direction could increase the burden on states to enforce consumer protection laws. This potential shift away from the established partnership between state and federal agencies is viewed with apprehension. The coalition asserts that the CFPB’s actions in the past year, coupled with the goals outlined in the proposed strategic plan, are likely to result in diminished consumer relief rather than increased protection.

The attorneys general who joined Attorney General Brown in signing the letter include those from Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaiʻi, Illinois, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Vermont, Virginia, Washington, and Wisconsin. Their collective stance emphasizes a unified concern over the potential negative impacts of the CFPB’s proposed strategic direction on consumer welfare and the integrity of the financial marketplace.

Article by Mel Anara, based upon information from the Maryland Attorney General.

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