Vermont and 22 Other AGs Warn Against Efforts to Defund and Shut Down Consumer Protection Agency
Attorney General Charity Clark today joined a coalition of 23 states to warn against efforts by the Trump administration and Elon Musk to defund and disband the Consumer Financial Protection Bureau (CFPB). The CFPB is an independent agency that oversees big banks, lenders, credit card companies, and mortgage servicers and ensures companies are following federal consumer protection laws. Since its creation, the CFPB has helped millions of Americans by helping homeowners facing foreclosure stay in their homes, stopping banks from charging junk fees, and returning more than $20 billion to the pockets of consumers nationwide. The coalition argues in an amicus brief filed in the U.S. District Court for the District of Maryland that dismantling the CFPB would significantly harm consumers and hamper enforcement of federal consumer protection laws.
“A healthy marketplace requires consumer trust,” said Attorney General Clark. “The CFPB, created in the aftermath of the 2008 financial crisis, fosters consumer trust and protects both the consumer and the marketplace. To go back in time and destroy the CFPB is to imperil the economic stability that we have worked so hard to build.
I also want to assure Vermonters that my office’s Consumer Assistance Program is still here to help. The Consumer Assistance Program offers an invaluable service to Vermonters, and works every day to resolve complaints, generate refunds, and protect Vermonters from scams and identity theft. I encourage all Vermont consumers, including small businesses, to reach out to the Consumer Assistance Program for help.”
On February 9, 2025, the Trump administration directed the CFPB to stop all its ongoing work and to not begin any new investigations. The CFPB was formed in 2008 following the Great Recession to enforce federal consumer protection laws. Since its creation, the CFPB has worked with state attorneys general to address consumer issues related to banking, student loan servicers, mortgage servicers, auto lending, and other consumer financial matters. The CFPB has also partnered with attorneys general to stop deceptive, unfair, and abusive conduct by companies. As a result of the Trump administration's actions, the nation's largest banks are no longer being closely watched for compliance with key consumer protections by any federal regulator.
In their brief, the coalition argues that the administration’s efforts to destroy the CFPB could prevent consumers from reporting issues of fraud or deception. The coalition also writes that efforts to shut down the CFPB send a signal that there will be no oversight over big banks and financial institutions, further harming consumers. The attorneys general warn that this may lead to financial institutions loosening their regulatory compliance, as was seen in the years leading up to the financial crisis.
The Attorney General’s Consumer Assistance Program (CAP) offers a free mediation service to all Vermont consumers, including small businesses. If you are a consumer in need of assistance, please contact CAP by calling 1-800-649-2424 or visiting ago.vermont.gov/cap.
Joining Attorney General Clark in filing today’s brief are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Washington, Wisconsin, and the District of Columbia.
A copy of the amicus brief is available here.
CONTACT: Amelia Vath, Outreach and Communications Coordinator, 802-828-3171