By: Richard L. Smith
New Jersey Attorney General Jennifer Davenport has joined a coalition of 23 attorneys general in opposing a draft Strategic Plan by the Consumer Financial Protection Bureau (CFPB) that they say would significantly weaken oversight of financial institutions and leave consumers more vulnerable to fraud.
According to a statement released by the coalition, the plan proposes major staffing reductions and structural changes that could undermine the agency’s legally mandated role to supervise banks and enforce consumer protection laws.
In a letter sent to CFPB Acting Director Russell Vought, the attorneys general stressed that the agency plays a critical role as the nation’s only federal watchdog solely focused on consumer financial protection.
They warned that scaling back its operations could have serious consequences for both consumers and the broader financial marketplace.
The coalition pointed to growing concerns nationwide, noting that nearly 40% of U.S. adults reported experiencing some form of financial fraud or scam within the past year.
“Instead of trying to drive down costs and make life more affordable, the CFPB under President Trump has rolled back critical financial protections that were on track to save consumers billions of dollars,” Davenport said in the statement.
“Now, at the height of a national affordability crisis, the CFPB is signaling its plan to decimate its tools to police financial institutions and prevent fraudsters from stealing consumers’ hard-earned dollars.”
The CFPB was created by Congress following the 2008 financial crisis to serve as a centralized regulator of consumer financial products and services.
Since its inception, the agency has returned more than $21 billion to consumers through enforcement actions and settlements.
However, the attorneys general allege that recent actions by the Trump Administration—including efforts to drastically reduce staffing, drop enforcement cases, and roll back consent orders—have already weakened the agency’s impact and reduced potential relief for consumers.
Among the most concerning proposals outlined in the draft plan is a move to shrink a 72-person supervision team within the Office of Supervision Policy and Operations down to a single staff member—an adjustment the coalition says would make effective oversight of the multi-trillion-dollar financial industry virtually impossible.
The attorneys general also warned that the plan’s broader deregulatory approach could shift more responsibility onto states by weakening long-standing partnerships between federal and state enforcement agencies.
In addition to New Jersey, the letter was signed by attorneys general from states including New York, California, Colorado, Oregon, and others.
Davenport is also co-leading a separate multi-state lawsuit aimed at preventing efforts to defund the CFPB altogether.
Officials emphasized that beyond protecting consumers, the CFPB also plays an important role in maintaining fair competition and helping financial institutions comply with the law—benefits they say would be jeopardized if the agency is significantly scaled back.