The Consumer Financial Protection Bureau (CFPB), the nation’s financial watchdog agency, was halted from being defunded after a lawsuit filed by Democracy Forward on behalf of Baltimore and a nonprofit organization. The CFPB had sent termination notices to dozens of staffers and instructed employees to stay home in January.
The Trump administration had planned to cut off funding to the CFPB, which would have effectively shut it down. However, a joint motion was filed stating that none of the agency’s funding will change until the court hears the case. Democracy Forward President Skye Perryman said, “The Consumer Financial Protection Bureau protects all Americans from predatory and discriminatory practices. It has returned $20 billion back to the American public.”
Baltimore relies on the CFPB’s consumer complaint database to protect residents from financial scams. The city claims that without the agency, people would be more at risk of being tricked by shady financial practices, and resources would need to be diverted to provide the same level of protection.
The lawsuit alleges that the Trump administration’s actions violate the Administrative Procedure Act. The CFPB will remain funded until the court decides on the case, ensuring its ongoing operations continue uninterrupted.
Source: https://www.democracydocket.com/news-alerts/city-of-baltimore-sues-to-stop-dismantling-of-nations-financial-watchdog-agency