Attorney General Jennifer Davenport and 23 other attorneys general sent a letter on Apr. 20 opposing the Consumer Financial Protection Bureau’s (CFPB) draft Strategic Plan, which they say would significantly weaken the agency’s ability to supervise financial institutions and protect consumers from fraud.
The attorneys general argue that the proposed changes could leave consumers more vulnerable to scams at a time when, in the past year, 40% of U.S. adults have experienced some form of financial fraud or scam. The letter was addressed to CFPB Acting Director Russell Vought and emphasizes the importance of maintaining a strong federal agency dedicated exclusively to consumer financial protection.
“Instead of trying to drive down costs and make life more affordable, the CFPB under President Trump has rolled back critical financial protections that were on track to save consumers billions of dollars. Now, at the height of a national affordability crisis, the CFPB is signaling its plan to decimate its tools to police financial institutions and prevent fraudsters from stealing consumers’ hard-earned dollars,” said Attorney General Davenport. “The Trump Administration has caused prices to skyrocket and paved the way for scams to escalate, and we will not sit idly by when hard-working New Jerseyans are victimized by corporate wrongdoers.”
Since its creation after the 2008 financial crisis, Congress tasked the CFPB with policing consumer financial products. The bureau has returned over $21 billion to consumers since then. However, according to Davenport’s office, recent efforts have included attempts by the Trump Administration to drastically reduce staff numbers within key supervision teams—from 72 staff members down to one—making it difficult for effective oversight.
Davenport also joined colleagues from New York, Oregon, Colorado, California and others in legal action against these changes. The group contends that allowing such reductions would harm both consumers and legitimate businesses by reducing fair competition guidance as well as confidential resolution opportunities for legal violations.
According to the official website, the New Jersey Attorney General Matthew Platkin aims not only at protecting residents but also upholding legal standards statewide through enforcement support across all counties (source). The office offers services such as law enforcement oversight and consumer protection initiatives while functioning as an agency focused on justice throughout New Jersey (source).
As discussions about regulatory priorities continue nationally, observers note that state attorneys general may face increased burdens if federal agencies scale back their involvement in consumer protection.
