By Stacy M. Brown
NNPA Newswire Senior National Correspondent
@StacyBrownMedia
The NAACP has filed a lawsuit in the U.S. District Court for the District of Columbia challenging the legality of the Trump administration’s decision to dismantle the Consumer Financial Protection Bureau (CFPB). The civil rights organization argues that the move undermines protections for Black, elderly, and vulnerable consumers, leaving them exposed to financial exploitation. NAACP President and CEO Derrick Johnson condemned the administration’s actions, calling them a reckless assault on consumer protections. “Once again, we are witnessing the dangerous impacts of an overreaching executive office. The Trump Administration’s decision to dismantle the Consumer Financial Protection Bureau opens the floodgates for unethical and predatory practices to run rampant,” Johnson stated. “We refuse to stand idly by as our most vulnerable communities are left unprotected due to irresponsible leaders. From seniors and retirees, disabled people, and victims of disaster to so many more, our nation stands to face immense financial hardship and adversity as a result of the elimination of the CFPB. If our President refuses to put people over profit, the NAACP will use every tool possible to put Americans first.”
The lawsuit comes after a series of drastic actions following the ouster of CFPB Director Rohit Chopra. President Trump replaced Chopra with Russell Vought, who immediately instructed staff not to perform any work tasks and ordered the closure of the agency’s headquarters, taking steps to cancel its lease. Vought also suspended all investigations, rulemaking, public communications, and enforcement actions. Keisha D. Bross, NAACP Director of Opportunity, Race, and Justice, said the organization maintains its commitment to restoring the bureau’s critical role in protecting consumers. “The CFPB is an agency of the people. From the protection from junk fees to fighting excessive overdraft fees, providing assistance to impacted victims of natural disasters, and holding predatory practices accountable, the NAACP stands firm in bringing back the CFPB,” Bross said. “The NAACP will fight to hold financial entities responsible for the years of inequitable practices from big banks and lenders.”
The lawsuit, filed alongside the National Treasury Employees Union (NTEU), the National Consumer Law Center, the Virginia Poverty Law Center, and the CFPB Employee Association, argues that the administration’s actions violate the Constitution and the Administrative Procedure Act. According to the complaint, the Trump administration has taken deliberate steps to dismantle the CFPB, including firing 70 employees via form email, canceling over $100 million in vendor contracts, and shutting down the agency’s consumer complaint system, which processes hundreds of thousands of cases monthly. The plaintiffs warn that these actions will leave millions of Americans defenseless against financial fraud and predatory lending practices. The lawsuit details the harm already inflicted by the agency’s closure. Among those affected is Rev. Eva Steege, an 83-year-old pastor with a terminal illness who was seeking student loan forgiveness through a CFPB-facilitated program. Her meeting with CFPB staff was abruptly canceled, leaving her without recourse to resolve her debt before passing.
The NAACP and other plaintiffs seek an immediate injunction to halt the administration’s actions and restore the CFPB’s operations. The legal challenge argues that the President has no unilateral authority to dismantle an agency created by Congress and that Vought’s appointment as acting director is unlawful. President Trump has made no secret of his desire to eliminate the CFPB, confirming last week that his administration was working to “totally eliminate” the agency. Tech billionaire Elon Musk, a key player in Trump’s “Department of Government Efficiency,” celebrated the move with a social media post reading “CFPB RIP.”
If successful, the lawsuit could force the administration to reinstate the agency and resume its enforcement actions against financial institutions accused of predatory practices. “Neither the President nor the head of the CFPB has the power to dismantle an agency that Congress established,” the plaintiffs argue. “With each day the agency remains shut down, financial institutions that seek to prey on consumers are emboldened—harming their law-abiding competitors and the consumers who fall victim to them.”
