Minn. consumer committee warned federal action has effectively halted CFPB; state agencies prepare to absorb complaints

Chair Cline, chair of the Commerce and Consumer Protection Committee, opened a Feb. 20, 2025 informational hearing to brief the committee on recent national changes at the Consumer Financial Protection Bureau and the potential effects on Minnesota consumers.

The hearing brought testimony from Jacqueline Olson, Enforcement Assistant Commissioner at the Minnesota Department of Commerce, Attorney General Keith Ellison, and two public witnesses who described how CFPB enforcement and complaint tools have affected borrowers and renters in Minnesota. The committee heard that actions at the federal level have paused or curtailed core CFPB operations — including a complaint portal, supervisory examinations and a civil penalty fund — and that state agencies may need to take on increased caseloads or coordinate multi‑state enforcement.

“Members, the Consumer Financial Protection Bureau was created 15 years ago … and since its inception it has saved American consumers $20,000,000,000,” Chair Cline said in opening remarks, urging the panel to consider how changes at the federal level could affect Minnesotans. The chair described press reports that, beginning Feb. 7, acting CFPB leadership and Office of Management and Budget directives halted staff work, restricted examinations and paused certain funding to the agency.

Jacqueline Olson, Enforcement Assistant Commissioner at the Minnesota Department of Commerce, described which Commerce teams already…