A group of 19 state attorneys general, including California Attorney General Rob Bonta, voiced their opposition to a series of proposals from the Consumer Financial Protection Bureau (CFPB) that they say will dramatically shrink the Bureau’s supervisorial oversight.
They say the proposals would reduce the oversight for the auto finance, consumer reporting, debt collection, and international money transfer services markets.
The proposals outline the CFPB’s intention to regulate only a handful of companies in each of these markets, leaving consumers who use the vast majority of companies in these markets unprotected. Specifically, the proposals would limit the CFPB’s oversight to as few as six consumer reporting companies, 11 debt collectors, four international money transfer providers, and five auto finance companies.
“The Trump Administration’s razing of the CFPB, the top cop protecting Americans from financial exploitation, puts families nationwide at a glaring disadvantage when standing up to big businesses that aren’t playing by the rules,” Bonta said. “With these proposals to limit its own oversight of critical financial markets, the CFPB is attempting to skirt its obligation under federal law to protect American consumers, meaning that hundreds of thousands of consumer complaints would fall on deaf ears. If you have ever had issues with your car loan, with sending money internationally, or have ever disputed a credit score error, these proposals impact you.”
Bonta and the other attorneys general sent letters to the CFPB, opposing all four proposed rulemakings. The attorneys general argue that the proposals would leave millions of Americans without a federal agency looking after their best interests. Further, they said it would violate the CFPB’s obligation to protect consumers under federal law.
Joining Bonta in signing the letter are attorneys general from Arizona, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, and Washington.