DFL lawmakers, students say Minnesotans at risk if Trump shutters CFPB

ST. PAUL, Minn. (FOX 9) - DFL lawmakers are warning Minnesotans about the potential risks they’d face if the Trump administration folds the Consumer Financial Protection Bureau (CFPB).

What is CFPB?

Mortgage mess cleanup:

The agency was created to protect Americans from credit card companies, mortgage providers, and debt collectors, among others.

It's gotten $21 billion returned to consumers since it was set up 13 years ago.

But critics in the Trump administration say it goes after businesses beyond its legal authority.

The administration cut off funding to the CFPB, halted its work, closed its headquarters, fired a lot of its workers, and shut down its website this month.

The bureau’s champions have clawed some of that back, but the administration still wants to shrink or eliminate it.

"If you have a credit card, a mortgage or a student loan, if you owe medical debt, if you use virtual currency, or you even have an account with a big bank, these actions from the Trump administration can place you at risk," said Sen. Matt Klein, (DFL-Mendota Heights).

Impact in Minnesota

Getting money back:

CFPB recently helped Minnesota and six other states shut down an illegal debt relief company that allegedly took $100 million from consumers.

It’s the country’s only watchdog of credit card companies and large banks.

"Without the CFPB doing this work, who is going to protect student loan borrowers like me?" asked University of Minnesota student Jacob Richter.

It also helped Australia Ford after she paid more than $1600 in interest and fees on a $280 loan from a payday lender.

"Without the protection that the CFPB provides, I might still be trapped in a cycle of debt that would have been nearly impossible to escape," said the Metro State student.

What's the beef?

'Woke & weaponized':

But its acting director called the CFPB "a woke & weaponized agency against disfavored industries and individuals for a long time."

And Minnesota Republicans are not supportive of the state attorney general weighing in on a lawsuit hoping to save the bureau’s funding.

"It's the kneejerk joining into every, you know, far-left lawsuit against the Trump administration that I think is not the right approach for Minnesota," said House Majority Leader Harry Niska, (R-Ramsey).

Minnesota attorney general Keith Ellison said the CFPB is a critical partner in protecting Minnesotans, it’s not redundant at all, and without it, nobody will be watching the store.