Michigan Attorney General Dana Nessel joined a coalition of 23 attorneys general on Apr. 21 in calling on the Consumer Financial Protection Bureau (CFPB) to reverse plans that would reduce staff, weaken enforcement, and limit consumer protections.
The letter to CFPB Acting Director Russell Vought argues that maintaining a strong supervision program is essential for protecting consumers and ensuring a fair financial marketplace. The attorneys general warn that proposed workforce reductions would hinder the agency’s ability to fulfill its statutory duties.
“Michigan families depend on the CFPB to defend them from deceptive financial institutions,” said Attorney General Nessel. “With the Michigan Consumer Protection Act having been gutted by court rulings, the CFPB has been an important line of defense for Michiganders against bad actors. Scaling back the agency doesn’t just reduce staffing. It abandons working families getting ripped off by unscrupulous practices. Michigan residents need the CFPB to have their backs, and I call on the agency to uphold its mission to protect consumers, not predatory corporations.”
Since its creation after the 2008 financial crisis, the CFPB has provided over $21 billion in relief through enforcement actions and supervision work. The current plan would cut supervision staff from 72 people down to one in some divisions, according to information released with the letter.
Nessel and her colleagues argue these changes come as Michigan faces unique challenges due to strict limitations in its own consumer protection statute, which complicate investigations and limit recourse for residents and businesses. Although Nessel has asked Michigan’s Supreme Court to reconsider earlier rulings affecting state action against certain regulated entities under state law, significant obstacles remain.
The coalition further warns that reducing federal oversight will leave more responsibility with states at a time when nearly 40% of U.S. adults have experienced some form of financial fraud or scam within a year.
According to the official website, Dana Nessel serves as Michigan’s 54th attorney general, leading efforts across public service initiatives including policy drafting such as Clean Slate expungement opportunities since 2019; supporting vulnerable populations; acting against human trafficking; influencing policy statewide; and exercising authority throughout Michigan.
Joining Nessel are attorneys general from Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Hawai’i, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon,Vermont,V irginia ,Washington ,and Wisconsin.