States sue to block move that could defund CFPB 


Secure refunds: James speaks to the media in Norfolk, Virginia. The 21 states, led by New York Attorney General James, seek a court order barring the administration from completely defunding the CFPB. — AFP

WASHINGTON: The Trump administration is illegally trying to cripple the Consumer Financial Protection Bureau (CFPB) by refusing to ask the Federal Reserve (Fed) for funds needed to run the independent regulator, a group of mostly Democratic-led states say in a federal lawsuit.

CFPB acting director Russel Vought’s decision will “virtually guarantee” the agency runs out of money in January, preventing it from carrying out legally mandated responsibilities that include fielding thousands of customer complaints about financial institutions and their products, 21 states and the District of Columbia said in a suit filed on Monday in Portland, Oregon.

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