Attorney General Jeff Jackson has filed a lawsuit to defend the funding of the Consumer Financial Protection Bureau (CFPB). Jackson stated, “Congress created the CFPB, funded it, and gave it a clear mission: protect consumers. No agency official has the authority to override that decision. This lawsuit is about making sure consumers don’t lose a watchdog that has already returned billions of dollars to millions of people who were unfairly treated.”
The CFPB is responsible for creating and enforcing rules for financial institutions, collecting economic data, and handling consumer complaints. It is the only federal agency with authority to supervise large banks for compliance with consumer protection laws.
The law requires the CFPB to share information with states, which helps state agencies investigate wrongdoing and recover funds for consumers. States also refer consumer complaints to the CFPB for further action.
The North Carolina Department of Justice has worked closely with the CFPB in recent years on cases that have resulted in financial recoveries for residents. The department provides legal and law enforcement services statewide, including consumer protection efforts as described on its official website.
In November, Russel Vought, acting director of the CFPB, decided not to request funding from the Federal Reserve. He argued that the agency could only be funded by profits from the Federal Reserve, which he said do not currently exist. The attorneys general involved in this lawsuit claim that this decision violates both federal law and the Constitution because Congress established and funded the CFPB.
The attorneys general are asking a court to require the agency to request necessary funding from the Federal Reserve so it can fulfill its legal duties.
Attorney General Jackson is joined in this legal action by attorneys general from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Wisconsin and Washington D.C.
A copy of the complaint is available here.
