Attorney General James Leads Multistate Statement in Support of CFPB in Supreme Court Case
Sixteen AGs Highlight CFPB’s Role in Protecting Consumers Nationwide
NEW YORK – On Tuesday, October 3rd, the United States Supreme Court will hear oral arguments in Consumer Financial Protection Bureau v. Community Financial Services Association of America Ltd. The Community Financial Services Association of America (CFSA) is asking the Supreme Court to affirm the Fifth Circuit’s ruling that threatens the Consumer Financial Protection Bureau’s (CFPB) funding and existence. A coalition of 16 attorneys general led by New York State Attorney General Letitia James is asking the Supreme Court to reverse the Fifth Circuit’s decision and maintain the CFPB’s existence because it is vital to protecting consumers and ensuring a fair financial system. Earlier this year, Attorney General James led a multistate coalition in submitting an amicus brief in this case.
The CFPB serves several functions that are invaluable to states and state attorneys general. It provides necessary transparency and clarity to consumers seeking to navigate a confusing and opaque financial marketplace. It provides educational resources that aid consumers with questions or issues related to their various financial accounts and also provides an easier avenue for complaints against financial bad actors. It also supports state regulation of the financial industry and provides federal overlay for issues within the financial industry that states are unable to address. Together with the CFPB, state attorneys general have taken action to stop predatory companies, return billions of dollars back to defrauded consumers, and protect consumers from scammers.
The coalition of 16 attorneys general issued the following statement today:
“Since its inception, the Consumer Financial Protection Bureau has been vital to consumers nationwide and to states seeking to protect consumers from overzealous and predatory actors in the financial marketplace. As state attorneys general who are committed to consumer protection and ensuring strong regulatory frameworks are in place to prevent widespread financial abuses, we are unequivocal in our support of the CFPB and its independent regulatory authority. State attorneys general are known as “the People’s Lawyer” for a reason — we advocate for the best interests and wellbeing of our constituents against predatory businesses and lenders, and the CFPB is an invaluable partner in that work.”
Joining Attorney General James in today’s statement are the attorneys general of Arizona, California, Connecticut, Delaware, Illinois, Maryland, Massachusetts, Minnesota, Nevada, North Carolina, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia.
Attorney General James and the CFPB have led several consumer protection cases. In January, Attorney General James and the CFPB sued Credit Acceptance Corporation (CAC), one of the nation’s largest subprime auto lenders, for deceiving thousands of low-income New Yorkers into taking out high-interest car loans. In May 2022, Attorney General James and the CFPB shut down a predatory debt collection operation that used deceptive and abusive tactics to illegally collect millions of dollars from hundreds of thousands of consumers. In April 2022, Attorney General James and the CFPB filed a lawsuit against MoneyGram International, Inc. and MoneyGram Payment Systems, Inc. (MoneyGram) for repeatedly violating consumer protection laws. In February 2021, Attorney General James and the CFPB sued Libre by Nexus for preying on immigrants held in federal detention by offering to pay for their bonds while hiding true costs.