Washington -INFOHAITI.NET – At a Senate Banking Committee forum convened by Ranking Member Elizabeth Warren, Massachusetts Attorney General Andrea Campbell joined fellow panelists (Lorelei Salas, former CFPB Director of Supervision Policy, Marette Gillen, a mortgage originator from Texa and Stacey McCall, a retired Army veteran of 20 years from Maryland) to discuss the Trump-Musk attack on American consumers and the potential consequences of dismantling the Consumer Financial Protection Bureau (CFPB).
The discussion underscored the CFPB’s crucial role in safeguarding consumers from financial exploitation, having returned over $21 billion to families affected by fraudulent financial institutions.
Addressing the Affordability Crisis
Campbell began her testimony by addressing the affordability crisis facing this country, which she described as the foremost issue affecting constituents. “Everything today is too expensive—housing, groceries, utility bills, auto and home insurance, medical insurance, child care, and education,” she stated. She cited Massachusetts’ skyrocketing housing costs, noting that the median home price in Boston has reached nearly $1 million.
Beyond rising costs, Campbell warned of companies and individuals preying on consumers. “In addition to increasing prices, there are bad actors devising ways to steal money and scam hard-working people,” she said, highlighting that her office handled over 24,000 complaints last year, recovering more than $10 million for Massachusetts residents.
Consumer Protection and State Attorneys General
Campbell detailed how the CFPB has been instrumental in shielding consumers from predatory practices, particularly for homeowners struggling with mortgage payments, first-generation college students burdened by predatory for-profit institutions, and Americans trapped by escalating debt. “Since its inception, the CFPB has returned over $20 billion to consumers,” she noted, citing successful collaborations with her office, such as the $1.85 billion settlement with student loan lender Navient and the $86 million multistate settlement with mortgage servicer Nationstar.
Rejecting criticisms that the CFPB is a “rogue agency,” Campbell countered, “Some call the Bureau a woke, weaponized agency. But the real rogue actors are corporations exploiting consumers to boost profits.” She stressed that consumers must remain vigilant, as financial institutions rely on the average person’s lack of resources to fight back.
Addressing Elder Scams: Exchange with Senator Lisa Blunt Rochester (D-DE)
Senator Lisa Blunt Rochester asked Campbell about her office’s work against elder scams and the potential impact of eliminating the CFPB. Campbell responded by highlighting Massachusetts’ Elder Justice Unit, which coordinates efforts across different agencies to protect senior citizens from fraud. “Elders are disproportionately affected by scams, from fraudulent assisted living services to rising utility costs,” she explained.
She cautioned that without the CFPB, consumer protection would vary widely across states. “Some states have Attorneys General willing to step up, but others do not. Without a national watchdog like the CFPB, many seniors and veterans will be left defenseless.”
Overdraft Fees and Financial Regulation: Exchange with Minority Leader Chuck Schumer (D-NY)
Minority Leader Chuck Schumer (D-NY) pressed Campbell on the effort to overturn the CFPB’s proposed $8 cap on overdraft fees. She underscored the urgency of continued financial regulation. “Consumers need to pay attention to what’s happening behind closed doors. While state AGs are working to fill the gaps, we need federal action to ensure protections are comprehensive and consistent.”
Campbell pointed to her office’s collaboration with New York Attorney General Letitia James and other state officials in drafting regulations against junk fees and predatory financial practices. “We’re stepping up, but eliminating the CFPB will only embolden financial institutions looking to exploit working-class Americans.”
Digital Payments and Musk’s Role: Exchange with Senator Amy Klobuchar (D-MN)
Senator Amy Klobuchar raised concerns about Elon Musk’s company, X (formerly Twitter), expanding into digital payments while advocating for the CFPB’s dismantling. She noted that the CFPB had previously taken enforcement actions against digital payment platforms like Venmo, PayPal, and Cash App for failing to prevent fraud.
Massachusetts AG Campbell responded bluntly: “Financial markets cannot regulate themselves. They won’t.” She reiterated the CFPB’s importance, stating, “While state AGs play a crucial role, our ability to act is not uniform across the country. Without the CFPB, consumers will be left vulnerable.”
State Tools vs. Federal Action: Exchange with Senator Andy Kim (D-NJ)
New Jersey Senator Andy Kim asked Campbell what legal tools state AGs have to protect consumers in the absence of the CFPB. Campbell praised New Jersey Attorney General Matt Platkin, noting their collaboration on consumer protection cases. “We have significant tools—litigation, regulatory proposals, direct advocacy—but we need federal support.”
She highlighted Massachusetts’ proposed junk fee regulations and ongoing outreach efforts to educate consumers. “Many elders don’t even realize they’ve been scammed until we educate them. Because these scams are often national and international, a strong CFPB is necessary to complement state efforts.”
“I know what it means to grow up poor … “
MA AG Campbell closed her remarks with a forceful defense of the CFPB, pushing back against right-wing rhetoric. “Some call the Bureau a ‘woke, weaponized agency.’ I tell consumers: you better wake up.” Drawing from her personal experiences growing up in poverty, she reaffirmed her commitment to economic justice. “I know what it means to grow up poor, to watch my father pinch pennies, moving $10 between bank accounts just to buy food. I will do everything in my power to protect my people.”
She warned that dismantling the CFPB would benefit only major banks and financial institutions that have previously received taxpayer-funded bailouts. “Eliminating the Bureau is not about efficiency. It’s a giveaway to the same corporations that got bailed out before and will expect another bailout in the future.”
As the forum concluded, Campbell’s impassioned defense of consumer protections made clear that the battle over the CFPB is far from over. “This work is not about me or even us,” she declared. “It’s about serving the public and ensuring an economy that works for everyone, not just the wealthy few.”
