CFPB Shutdown: The Last Line of Defense is Legal Action—Petroff Amshen LLP Steps Up | Petroff Amshen LLP

February 13, 2025

CFPB Shutdown: The Last Line of Defense is Legal Action—Petroff Amshen LLP Steps Up

The Trump Administration has just delivered a devastating blow to consumer rights. The Consumer Financial Protection Bureau (CFPB), the last federal safeguard standing between financial institutions and consumers, has been ordered to shut down. With this move, banks and mortgage lenders now have a free pass to exploit homeowners, borrowers, and everyday Americans with zero oversight.

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"This is a reckless assault on consumer protections," says Steven Amshen, founding partner of Petroff Amshen LLP. "The CFPB was established to protect consumers from corporate misconduct. Without it, banks and lenders will operate unchecked, putting homeowners and borrowers at risk. The only way to fight back now is through legal action."

With no federal agency keeping lenders in check, consumers face greater risks than ever:

Foreclosures will increase—banks will seize homes without proper legal procedures.

Identity theft victims will struggle—creditors will take advantage of the lack of oversight.

Fraudulent loans will spread—unfair loan terms will become harder to dispute.

Debt collectors will act without limits—harassment and illegal collection practices will rise.

The shutdown of the CFPB opens the door for widespread financial misconduct. Banks and lenders now have fewer barriers preventing them from engaging in abusive practices. Homeowners facing foreclosure may find their options dwindling, while victims of identity theft will struggle to get financial institutions to correct fraudulent accounts. Borrowers dealing with deceptive loan terms will have no regulatory body to appeal to, making it harder to challenge unfair agreements. And with debt collectors emboldened by the lack of oversight, harassment and aggressive collection tactics will likely become the norm.

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"Homeowners and consumers need aggressive legal representation, now more than ever. We will not let financial institutions trample over people’s rights."

The collapse of the CFPB doesn’t mean consumers are powerless—it means they need to act fast. Petroff Amshen LLP is stepping up to fight where regulators no longer can.

"We are taking the battle straight to the courtroom," Amshen declares. "Homeowners and consumers need aggressive legal representation, now more than ever. We will not let financial institutions trample over people’s rights."

Petroff Amshen LLP is committed to holding lenders and banks accountable through litigation, negotiation, and relentless advocacy. The firm urges consumers to take immediate action:

Review all mortgage and loan documents—understand where you stand before it’s too late.

Monitor your credit reports aggressively—identify fraudulent activity before it spirals.

Document all interactions with financial institutions—keeping records can be critical in legal battles.

Call an attorney at the first sign of trouble—delays only strengthen the banks' position.

The firm emphasizes that legal action is the only meaningful recourse left for consumers. Without the CFPB, there is no government agency to intervene when financial institutions engage in misconduct. It is up to homeowners and borrowers to protect themselves by seeking experienced legal representation before they become victims of unchecked financial abuse.

"Regulators may have abandoned consumers, but we haven’t," says Amshen. "Petroff Amshen LLP will fight for every homeowner, borrower, and consumer who refuses to be silenced after being subjected to financial abuse by powerful institutions."