Comptroller Brad Lander Calls to Modernize Consumer Financial Protections Amid Trump Rollbacks 

New York, NY — Today, New York City Comptroller Brad Lander called on City Hall and leaders in Albany to strengthen local consumer financial protections to safeguard New Yorkers in a new report. The Trump Administration’s dismantling of the Consumer Financial Protection Bureau (CFPB)—including the elimination of 90 percent of its staff—will leave millions of Americans more vulnerable to unfair, deceptive, and abusive business practices from lenders and financial institutions of all types. Comptroller Lander’s report demands that State and City leaders close regulatory and enforcement gaps, increase banking access and affordability, and expand consumer rights, engagement, and outreach.

“Working-class New Yorkers still feel the Great Recession’s impact every day, but now, thanks to Donald Trump and his corporate cronies, we are worse off,” said New York City Comptroller Brad Lander. “Thirteen years ago, leaders like Elizabeth Warren and countless others fought for landmark consumer protections to protect millions from unchecked wrongdoing after decades of predatory lending and abusive business practices that created one of the worst economic crises in living memory. At a time when our President would rather enrich and protect his billionaire besties, City and State leaders must protect the interests of hard-working New Yorkers trapped in an economy that serves the very wealthy rather than working-class families.”

Over the past decade, the CFPB was instrumental in expanding access to safe, affordable credit and banking services. Created in the wake of the 2008 financial crisis, the Bureau protected millions of Americans through rulemaking, enforcement, and transparency tools. The Bureau introduced landmark regulations targeting harmful practices across the consumer financial marketplace: from payday lending to overdraft and credit card fees, buy-now-pay-later products, data privacy, credit reporting, and prepaid accounts. The Bureau returned nearly $20 billion to consumers and levied an additional $5 billion in civil penalties on companies that broke the law.

In the last six months, the Trump Administration effectively shuttered the CFPB—stripping away critical consumer protections, mass layoffs, and halting enforcement activity. These rollbacks mean state and city governments around the country must take a larger role in defending American consumers.

Existing gaps in city and state consumer financial protection policy, coupled with severely weakened federal oversight, leave New Yorkers especially vulnerable to harm. New York General Business Law § 349 is among the weakest consumer protection statutes in the country, and legal loopholes enable ultra-high-cost lenders to evade state usury law, trapping consumers in cycles of debt. In addition, decades of case law further narrowing consumer protection and limited resources at enforcement agencies have left New Yorkers all the more vulnerable to financial abuse.

The report calls on City Hall to leverage the City’s business relationships with banks—including via the New York City Banking Commission—to drive reform and better hold banks accountable. The New York City Banking Commission, comprising the Mayor, the Comptroller, and the Commissioner of Finance, is responsible for designating banks authorized to hold City deposits, ensuring these institutions meet standards of financial stability, community reinvestment, and consumer protections. The report calls on City and State leaders to:

Strengthen Enforcement Powers and Resources 

• Pass the FAIR Business Practices Act as proposed by Attorney General Letitia James to address New York’s weak consumer protection statute (GBL § 349)
• Fully fund the Office of the Attorney General, NY State Department of Financial Services (DFS), and NYC Department of Consumer and Worker Protection (DCWP) to investigate and act against harmful practices and protect local consumers
• Create a statewide Consumer Protection Restitution Fund to collect a portion of civil consumer penalties in order to compensate consumers who cannot otherwise receive restitution

Advance Affordable Banking Options 

• Enact DFS’ proposed rule limiting overdraft fees at state-chartered banks
• Require the acceptance of IDNYC as valid identification at banks, while providing targeted support for minority depository institutions and credit unions operating in underserved communities
• Promote awareness of minimal-cost “Bank On” accounts in underserved communities
• Expand funding for the City and State Banking Development District (BDD) programs and incentivize extra service provision at BDD branches

Regulate High-Cost Non-Bank Financial Products 

• Pass the End Loansharking Act (S1726/A4918) to regulate ultra-high-cost lenders
• Reject legislative efforts to merely license ultra-high-cost lending products without protecting against harmful business practices
• For all newly emergent consumer lending products, require clear disclosure of fee structures, APR equivalents, and consumer rights; ban solicitation of “tips”; and limit subscription fees

Protect Consumer Rights  

• Update New York’s privacy laws to clearly define consumers’ right to access, correct, delete, and limit the sale or use of their personal data, following best practices in states like California and Oregon
• Establish a statewide or citywide public consumer financial complaint database
• Enhance public awareness of safe, low-cost banking options through targeted outreach and education

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