States Rising Up to Protect Consumers
While Musk ravages Consumer Bureau, states start picking up the slack
While Elon Musk and the DOGE Death Star continue their takedown of the Consumer Financial Protection Bureau (CFPB), states are rising to fill in the gaps.
The latest example comes from New York, where Attorney General Letitia James is driving legislation to update that state’s consumer protection laws.
“In New York right now, companies can make canceling a subscription so hard it seems impossible; nursing homeowners can sue relatives of deceased former residents; and debt collectors can steal Social Security benefits,” said Attorney General James. “This legislation will put a stop to this all. At a time when the federal government is making life harder, we want to make life easier for New Yorkers. The FAIR Business Practices Act will close loopholes that make it too easy for New Yorkers to be scammed, and will allow my office to go after anyone who violates the law and look forward to working with my partners in state government to ensure that as Washington retreats from protecting consumers, New York steps up to lead.”
Likewise, in Tennessee, one lawmaker is leading efforts to protect the Volunteer State’s citizens from medical debt.
With that in mind, Tennessee State Sen. London Lamar filed a pair of bills aimed at offering medical debt relief.
One bill provides direct relief by requiring hospitals to eliminate a certain portion of medical debt. The other says medical debt in collections may not be included on consumer credit reports.
Here’s hoping more states take notice - and take action - to protect consumers from payday predators, scammers, and fraudsters.
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With federal enforcement weakened - and state laws in the pipeline - what do you do if you have a complaint about a bad actor in the financial marketplace?
First, start with your state’s Attorney General.
Attorneys General typically have consumer protection divisions and can apply relevant state laws to your situation. Sometimes, if an AG asks, a company will answer.
Second, let your Member of Congress know. One, they may be able to assist with a resolution. But also, it is important for Congress to know their constituents value the work formerly performed by CFPB. Congress can rescue the consumer champion from the DOGE Death Star . . . if they want to.