A federal court granted summary judgment to Minnesota AG Keith Ellison and a coalition of 22 attorneys general in their lawsuit challenging the CFPB Acting Director’s decision not to seek funding. The court held the refusal unlawful and required the current Acting Director to request necessary funding so the CFPB can continue operating.
The court held that the CFPB Acting Director must request necessary funding from the Federal Reserve to allow the agency to operate as Congress intended.
This ruling does not identify a privacy violation or impose new privacy-contract requirements. In agreements supporting consumer financial products, review vendor and customer clauses for complaint intake and escalation, access to complaint data, cooperation with regulators, consumer restitution, and notice of regulatory changes; ensure vendors can preserve and provide relevant records if the CFPB or state regulators investigate. Employee agreements are not specifically implicated by this action.
Entity
Consumer Financial Protection Bureau (CFPB)
Industry
Financial ServicesOfficial Press Release
https://www.ag.state.mn.us/Office/Communications/2026/09/28_CFPB.asp
cfpb opinion
https://oag.ca.gov/system/files/attachments/press-docs/cfpb-opinion.pdf
0 25 cv 02384 CFPB Complaint
https://www.ag.state.mn.us/Office/Communications/2025/docs/0-25-cv-02384_CFPB_Complaint.pdf
Minnesota Attorney General Enforcement Page
https://www.ag.state.mn.us/consumer/
"Consumer Financial Protection Bureau (CFPB)"
"violated the Separation of Powers Clause in the U.S. Constitution."
"the CFPB Acting Director’s unlawful decision not to fund the agency’s operations"
"the current CFPB Acting Director Mark Paoletta must request necessary funding from the Federal Reserve"
"a coalition of 22 attorneys general"
Oregon Attorney General Dan Rayfield and a coalition of 21 other attorneys general obtained a federal court order requiring the CFPB’s Acting Director to request funding from the Federal Reserve. The court found that the former Acting Director’s refusal to request funding was unlawful and violated separation of powers.
On April 17, 2026, Connecticut Attorney General William Tong joined a coalition of 23 state attorneys general in sending a comment letter to CFPB Acting Director Russell Vought opposing the CFPB’s proposed strategic plan, which would drastically reduce agency staffing, weaken supervision of financial institutions, and curtail enforcement capacity. The coalition argues the plan would abdicate the CFPB’s statutory obligations, leave consumers vulnerable to fraud and scams, and shift enforcement burden to state agencies. The letter urges the CFPB to reverse course and maintain robust consumer protection efforts.
Minnesota Attorney General Keith Ellison issued a consumer alert explaining how veterans, their families, and others who believe Trajector Holdings owes them money can file claims in the company’s Chapter 11 bankruptcy. The release announces no privacy violation, enforcement penalty, or remedy against the company.
Minnesota and 39 other attorneys general filed a notice in Character Technologies, Inc.’s bankruptcy proceedings raising concerns about the company’s safety and privacy practices and the sensitive information it holds, including children’s private chatbot conversations. The states seek protections for consumers in any sale or transfer of the business or assets; the filing does not impose a penalty or establish a final remedy.
The Minnesota Attorney General filed an Assurance of Discontinuance requiring Auto Tech Donations, Inc. to dissolve after finding that its solicitations and governance did not comply with state requirements. Its president was banned from forming or serving as an officer or director of nonprofits and must provide restitution to donors whose vehicles he resold for personal benefit.
Minnesota Attorney General Keith Ellison and a coalition of 26 states, counties, and cities filed a lawsuit challenging NHTSA’s rule weakening fuel-economy standards for new cars and light trucks. The coalition alleges the rule violates the Administrative Procedure Act and the Energy Policy and Conservation Act; the press release describes a lawsuit filing, not a monetary penalty or final judgment.