TRENTON, N.J. — New Jersey Attorney General Matthew J. Platkin co-led a coalition of 23 attorneys general on Friday in filing a legal brief aimed at stopping what they describe as the unlawful dismantling of the Consumer Financial Protection Bureau (CFPB) by the Trump Administration.
The amicus brief, submitted to the U.S. Court of Appeals for the D.C. Circuit, supports plaintiffs in the case National Treasury Employees Union v. Vought. The suit challenges actions taken by Acting CFPB Director Russell Vought to strip the agency of its consumer protection powers, including staff layoffs and halting regulatory functions.
A district court issued a preliminary injunction on March 28 halting those actions, ordering the reinstatement of laid-off employees and requiring the agency to resume operations. The Trump Administration has appealed that decision.
Platkin said the dismantling would remove essential consumer safeguards. “The Consumer Financial Protection Bureau has successfully prevented corporations from taking advantage of our residents and has returned billions of dollars into the pockets of Americans,” he said in a statement issued Friday.
The coalition’s brief argues that without the CFPB’s oversight, states will face both immediate and long-term risks, including weakened regulation of major financial institutions and reduced ability for consumers to report fraud.
Key points
- New Jersey AG Platkin leads 23-state coalition defending CFPB
- Legal brief filed to uphold court order blocking CFPB dismantling
- Trump Administration appeal could strip consumer protections
Coalition cites risks to states if watchdog agency is weakened
The attorneys general contend that without the CFPB’s enforcement powers, consumers would face greater risks of deception and abuse by financial institutions. The brief warns that in the absence of federal oversight, states would struggle to fill the regulatory gap, potentially leading to a repeat of conditions that triggered the 2008 financial crisis.
The legal filing outlines concerns over halted investigations, blocked consumer complaint channels, and reduced federal enforcement of fair lending and debt collection laws. These developments, the brief states, would shift enforcement burdens to state agencies already operating under tight resources.
In addition to New Jersey, other states joining the brief include New York, California, Illinois, and Massachusetts, among others. The coalition represents a broad geographic and political span, underscoring national concern over the agency’s future.
The D.C. Circuit Court is expected to hear arguments in the case in the coming weeks, with a ruling on the preliminary injunction to follow.
The court’s decision could determine whether the CFPB retains its federal oversight authority or faces further rollback.
