Eight states have joined the fight against the Dodd-Frank Wall Street Reform and Consumer Protection Act, which included the creation of the Consumer Financial Protection Bureau.  The law was passed and the Bureau created, in reaction to the near Wall Street meltdown of 2007.

The lawsuit began in Texas and was filed on behalf of a small bank and two conservative political groups.  Their problem with the law and the Bureau according to the lawsuit is, “Dodd-Frank and the CFPB give too much power to federal officials, allowing unelected bureaucrats to "unilaterally liquidate financial institutions in which the state invests taxpayer dollars ... [therefore depriving states] of basic due process rights and [placing] taxpayers' resources at risk."

States that have joined the lawsuit are Alabama, Georgia, Kansas, Montana, Nebraska, Ohio and West Virginia.  The states that were already attached to the lawsuit include Oklahoma, South Carolina, and Michigan.

The CFPB has been quite proactive in its stated mission of making consumer financial products easier to understand and less predatory.  In addition to just reviewing banks’ the CFPB is examining credit rating companies, credit card companies and the payday loan process.

There is not much that is expected legally from this lawsuit, but that may not be the point.  The point may actually be to raise public opinion, so that the law can be changed to be less of a dictatorship (Richard Cordray) and more of a democracy (a newly created panel of which the financial industry would have a say.)

Thank you to Business Insider for the source material.