NEWS RELEASE
MICHIGAN ATTORNEY GENERAL
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LANSING — Michigan Attorney General Dana Nessel held a press conference Monday alongside former Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra, State Representative Kelly Breen, and Michigan consumer advocates to discuss the impact of the ongoing CFPB shutdown on Michiganders.
“As a result of the Trump Administration's continuing unlawful actions, my office can no longer rely on this once dependable and powerful partner to protect Michigan consumers,” said Attorney General Nessel.
“Their decision to strangle the CFPB has a particularly pernicious impact for Michigan consumers, who do not have the same state-level consumer protections that their neighbors in other states enjoy. Whether you know it or not, the Consumer Financial Protection Bureau has had your back for years and delivered justice (and billions of dollars) to millions of defrauded consumers throughout the nation and in Michigan. We simply, and literally, cannot afford to lose the CFPB.”
“Decades ago, federal regulators were asleep at the switch and allowed a subprime mortgage crisis to crater the economy of Michigan and the entire country,” said former Director Chopra. “A strong CFPB is an essential partner to state law enforcement and vital to protecting Americans across the country from financial fraud and abuse.”
“Protecting Michiganders is a nonpartisan issue,” said Representative Breen. “With the inability to pursue justice at the federal level, we must take action at the state level to allow people to protect themselves. Further, we must return the power to the state so that the state can help Michiganders against unscrupulous actors.”
The CFPB is an independent agency that oversees big banks, lenders, credit card companies, and mortgage servicers, ensuring they comply with federal consumer protection laws. Since its creation, the Bureau has worked closely with state attorneys general to address consumer issues related to banking, student loan servicers, mortgage servicers, auto lending, and other consumer financial matters.
The CFPB has played a key role in stopping deceptive, unfair, and abusive business practices, returning more than $21 billion to Americans since opening its doors in 2011. While the CFPB has worked to protect consumers throughout the nation, that protection is critical to Michiganders. Michigan has the strictest limitations in the U.S., often complicating the investigative process and limiting the recourse the Department can seek on behalf of residents and businesses alike.
While Attorney General Nessel has asked the Michigan Supreme Court to reconsider the two previous rulings that hinder the Department’s ability to take action against drug manufacturers and other regulated/licensed entities through a misconstruction of the Michigan Consumer Protection Act (MCPA), much of the business conduct the CFPB historically targeted falls outside of the Department’s jurisdiction. According to a 2023 report from the Center for American Progress, the agency took action on more than 90,000 complaints from Michigan residents alone.
However, in early February, the Trump administration effectively halted the CFPB’s operations and has dropped a number of ongoing enforcement actions. In response, Attorney General Nessel joined other attorneys general in filing two amicus briefs to defend the Bureau after the administration told employees to stop investigating deceptive and abusive conduct by companies. This included dismissing a lawsuit accusing Rocket Homes of offering kickbacks to brokers and agents who referred homebuyers to Rocket Mortgage.
To raise awareness about the CFPB’s vital role and the threats it faces, Attorney General Nessel released a video highlighting the Bureau’s impact and the risks posed by its shutdown.
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