ATG NEWS RELEASE: Hawaii Attorney General joins 15 states and D.C. in defense of consumer financial agency

Posted on Jan 24, 2017 in Latest News

HONOLULU – Attorney General Doug Chin yesterday joined attorneys general from 15 other states and the District of Columbia to intervene in federal litigation that threatens to weaken the U.S. Consumer Financial Protection Bureau (CFPB).

In 2010, following the global financial crisis, Congress created the CFPB as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Richard Cordray is currently the agency’s director, and under the 2010 law he is independent and can only be fired “for cause.”

A lawsuit against the CFPB brought by mortgage lender PHH Corporation challenged the structure of the CFPB and sought instead to make Cordray’s position “at will.” The state attorneys general who filed yesterday’s motion have asked to be able to defend the CFPB in the lawsuit and ensure the case is not declared moot if President Trump’s administration decides to stop defending this lawsuit.

“As president-elect, Donald Trump has expressed strong opposition to Dodd-Frank reforms,” the state attorneys general’s filing states. “It is urgent that the state attorneys general intervene in order to protect the interests of their states.”

Attorney General Doug Chin stated, “We must fight to protect Hawaii consumers from the predatory tactics of big banks and big businesses.”

The motion to intervene in PHH Corporation v. Consumer Financial Protection Bureau, now pending before the District of Columbia Circuit Court of Appeals, was filed by attorneys general of the states of Connecticut, Delaware, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, Mississippi, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont and Washington, and the District of Columbia.

A copy of the motion to intervene is attached.

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For more information, contact:

Joshua A. Wisch

Special Assistant to the Attorney General

Phone: (808) 586-1284

Email: joshua.A.Wisch@hawaii.gov

Web: http://ag.hawaii.gov

Twitter: @ATGHIgov