FOR IMMEDIATE RELEASE: 2/12/2025
Contact: Andy Morrison, andy@neweconomynyc.org, 212-680-5100 x210
The 50+ member organizations of the NYS Community Equity Agenda, representing hundreds of thousands of New Yorkers statewide, made the following statement responding to the Trump Administration’s assault on the Consumer Financial Protection Bureau (CFPB)—and urging state leaders to take bold action to protect New Yorkers from financial exploitation:
We unequivocally condemn the Trump administration’s cynical and destructive attempt to gut the CFPB by halting its operations and proposing a $0 budget.
Many of our organizations fought hard—in the wake of the subprime mortgage and foreclosure crisis that devastated New York communities—for the creation of the CFPB. The agency has since delivered real wins for millions of people, from reining in predatory overdraft fees and abusive debt collection to securing billions of dollars in relief for those harmed by financial predators.
Make no mistake: the Trump administration’s attempt to gut the CFPB will embolden predatory lenders, accelerate wealth extraction from low-income people and communities of color, and deepen economic inequality.
This blatant move is designed to shield big business from regulation, directly undermining the CFPB’s statutory mandate under the Dodd-Frank Act, which Congress passed to protect people from financial exploitation. The administration is effectively dismantling the agency, removing the most powerful line of defense between predatory lenders and the public. We join with community groups and advocates from across the country in urging Congress to act now to defend this vital agency.
In the absence of robust federal safeguards, New York’s legislators must take immediate, decisive action to defend New Yorkers from unleashed financial predation. We call on Governor Hochul and the NYS Legislature to prioritize financial and economic justice this legislative session, by:
- Passing the End Loan Sharking Act (S1726/A4918) to stop predatory lenders from evading New York’s usury laws and exploiting low-income New Yorkers with usurious, triple-digit interest rate loans.
- Passing the Consumer and Small Business Protection Act (S105) to strengthen protections against unfair, deceptive, and abusive business practices.
- Forcefully rejecting any effort to weaken our state’s usury laws—including through carveouts for fintech companies, check cashers, or other fringe financial services companies.
- Empowering state regulators to act boldly by fully funding the Attorney General and Department of Financial Services (DFS) to aggressively enforce consumer protections. The Governor must also direct DFS to take stronger action against companies violating usury laws and other consumer protections, while promoting structural solutions like public banking—just as the CFPB under Director Chopra has done.
New York must not only defend against financial exploitation but take bold action to address the root causes of wealth extraction and inequality. The state must advance public banking and expand support for community development financial institutions that provide responsible loans and investments in historically redlined communities; support community land trusts and permanently affordable, community-controlled housing; and ensure a living wage for all New Yorkers.
In the face of escalating federal attacks, we call on Governor Hochul and state lawmakers to stand up for New Yorkers, eradicate banking inequality that fuels poverty and the widening racial wealth gap, and build an economy that works for all.