The unilateral and unlawful dismantling of the U.S. Consumer Financial Protection Bureau is unconstitutional and will leave millions of Americans vulnerable to financial harm, Tzedek DC and 40 nonprofits said in an amicus brief filed this week with the U.S. Court of Appeals for the DC Circuit.
The brief urges the court to grant en banc review of NTEU v. Vought, a case that has enormous implications for the future of the consumer watchdog. The brief—filed by the Center for Consumer Law & Economic Justice at UC Berkeley, Tzedek DC, and Protect Borrowers—also includes 38 state, local, and national organizations across the country that rely on the CFPB in their work to protect consumers.
A copy of the amicus curiae brief is available here.
In March 2025, U.S. District Judge Amy Berman Jackson issued an injunction preventing the Administration from laying off the vast majority of the CFPB’s staff after finding clear evidence that the agency’s new leadership intended to shut down, not restructure, the CFPB. On appeal, a majority of a divided panel of the federal court of appeals concluded that it could not review the legality of that action.
The groups’ amicus urges the court to grant en banc review because the destruction of the CFPB–an agency created by Congress to protect millions of American families from financial harm—“presents an issue of exceptional importance.” Moreover, the groups point out, the administration has yet to present any argument defending the constitutionality of its actions, given that the power to create or dismantle an executive agency is a power that rests with Congress.
The groups write:
“Defendants’ conduct unlawfully contravenes Congress’s purpose in establishing the CFPB…and threatens significant harm to the particular constituencies the Bureau must by statute serve…Furthermore, if unchecked, these actions will remove the nation’s principal bulwark against toxic financial products, crooked lenders, and fraudulent schemes using new technologies like A.I. to hoodwink American consumers. With consumer financial fragility now reaching 2008 levels by some metrics, the gutting of the Bureau today poses significant danger to the U.S. economy.”
The brief also points out that the CFPB provides stability to the multitrillion dollar American consumer financial market; that the CFPB protects critical and highly vulnerable populations such as servicemembers, veterans, and older Americans from financial scams and fraud; and that shuttering the CFPB would undermine the agency’s consumer complaint process, a vital tool that has obtained beneficial resolutions for millions of American consumers in disputes with their financial service providers.
Read the press release on our filing of the amicus brief in the appeal of the District Court injunction in NTEU v. Vought here.
About Tzedek DC
Drawing from the Jewish teachings of “Tzedek, tzedek tirdof,” or “Justice, justice you shall pursue,” Tzedek DC’s mission is to safeguard the legal rights and financial health of DC residents with low incomes dealing with the often devastating consequences of abusive debt collection practices and other consumer related issues.
About Protect Borrowers
Protect Borrowers (formerly Student Borrower Protection Center) is a nonprofit organization led by a team of experts, lawyers, and advocates fighting to build an economy where debt doesn’t limit opportunity. We investigate financial abuses, take predatory companies to court, and push for policies to protect working people from debt traps. We aim to deliver immediate relief to families while building power, driving systemic change, and fighting for racial and economic justice.
About the UC Berkeley Center for Consumer Law & Economic Justice
The Center for Consumer Law & Economic Justice at U.C. Berkeley School of Law is the leading law school research and advocacy center dedicated to ensuring safe, equal, and fair access to the marketplace. The Center works to create a society where economic security and opportunity are available to all.