TRENTON, N.J. — New Jersey Attorney General Jennifer Davenport joined 23 other attorneys general in opposing a proposed strategic plan for the Consumer Financial Protection Bureau, warning it would weaken oversight and reduce protections for consumers.
In a letter to CFPB Acting Director Russell Vought, Davenport and the coalition argued the draft plan would significantly cut staffing, undermine enforcement efforts and limit the agency’s ability to supervise financial institutions.
“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.”
The CFPB, created after the 2008 financial crisis, is the federal government’s primary agency focused on consumer financial protection. Since its creation, it has returned more than $21 billion to consumers.
According to the attorneys general, the proposed plan would reduce key staffing levels, including shrinking a 72-person supervision team to a single employee, making it difficult to oversee what they described as a multi-trillion-dollar financial marketplace.
The coalition also warned that changes outlined in the plan — including reducing enforcement efforts and shifting toward a deregulatory approach — could place a greater burden on states to enforce consumer protection laws.
In the past year alone, officials noted that 40% of U.S. adults have experienced some form of financial fraud or scam.
Davenport, along with attorneys general from New York, Oregon, Colorado and California, is also co-leading a lawsuit aimed at preventing the federal government from defunding the CFPB.
The attorneys general said maintaining a strong CFPB is critical not only for protecting consumers but also for ensuring fair competition and compliance across the financial industry.
