Blue State AGs Vow to Up Enforcement As CFPB Leadership Fight Distracts Agency
While Consumer Financial Protection Bureau (CFPB) Deputy Director Leandra English and interim Director Mick Mulvaney argue in federal court over who gets to lead the agency until a permanent replacement for Richard Cordray can be confirmed by the Senate, attorneys general in a number of states like California, New York, Connecticut, Illinois, Minnesota, and New Mexico joined together in a letter to President Trump expressing their interest in progressing the mission of the Bureau.
At the same time, these same AGs also filed an amicus brief in support of English in her bid to temporarily manage the consumer agency. The letter to Trump takes this debate one step further by informing the President that these states plan on picking up any slack or delay in the enforcement of consumer protection laws caused by the leadership struggle at the CFPB.
New York Attorney General Eric Schneiderman wrote, “As you know, state attorneys general have express statutory authority to enforce federal consumer protection laws, as well as the consumer protection laws of our respective states. We will continue to enforce those laws vigorously regardless of changes to CFPB leadership or agenda.”
He went on to reinforce their commitment to consumer protection by saying, “As attorneys general, we retain broad authority to investigate and prosecute those individuals or companies that deceive, scam, or otherwise harm consumers. If incoming CFPB leadership prevents the agency’s professional staff from aggressively pursuing consumer abuse and financial misconduct, we will redouble our efforts at the state level to root out such misconduct and hold those responsible to account.”
Despite the backing of nearly 20 state AGs, around 30 former and current members of Congress, and consumer advocacy groups, English has a difficult task convincing the federal judge that the Dodd-Frank Act supersedes the President’s authority to name successors to top government posts. The judge already ruled against her request for a temporary order blocking Mulvaney from leading the agency in the interim, and the U.S. Department of Justice recently filed its own opposition to English’s motion for an injunction.
A protracted battle over the temporary leadership of the Bureau could now result in increased enforcement efforts at the state level.
