A group of 16 state attorneys general, led by Connecticut Attorney General George Jepsen, filed a motion to intervene in a federal appeals case and defend the constitutionality of the Consumer Financial Protection Bureau (CFPB).
In the case PHH Corp., et al v. Consumer Financial Protection Bureau, a divided court found last October that the structure of the CFPB unconstitutional. The CFPB appealed the ruling and now it is currently pending in the United States Court of Appeals for the District of Columbia Circuit.
In the motion to intervene, the attorneys general defended the CFPB, saying they have brought civil actions in coordination with the CFPB to protect consumers against unfair, deceptive and abusive financial practices.
Consequently, they argue that if the ruling is allowed to stand, the power of state attorneys general to protect consumers would be undermined. It would also reduce CFPB’s ability to withstand political pressure and act independently of the president.
The attorneys general state that President Trump’s strong opposition to Dodd-Frank reforms, the legislation that created the CFPB, could impact how – and if – this case proceeds.
“The CFPB is the cop on the beat, protecting Main Street from Wall Street misconduct,” Jepsen said. “It was structured by Congress to be a powerful and independent agency that would protect consumers from the abuses of Wall Street, banks, and other large financial institutions. That mission is still critical to consumers today. However, the Trump Administration has said it intends to weaken the CFPB. That calls into question whether the new administration will adequately defend the CFPB and the American public it protects.”
Jepsen said the Trump administration’s failure to support the CFPB would be a gift to powerful financial interests.
“Should the Trump Administration fail to adequately defend the CFPB in this litigation, state attorneys general – and the public – could lose the benefits of a powerful enforcement partnership,” Jepsen said. “State attorneys general have a vested interest in this case – one that may not continue to be represented as this litigation progresses – and for that reason we believe it is important that the court grant attorneys general the opportunity to participate in this litigation going forward.”
Joining Jepsen on the motion are attorneys general from Delaware, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, Mississippi, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington and the District of Columbia.