On May 19, 2022, the CFPB released an interpretive rule that describes states’ authorities to pursue lawbreaking companies and individuals that violate the provisions of federal consumer financial protection law. This action is part of the CFPB’s expansion of efforts to support state enforcement activity.
From CFPB Director Rohit Chopra’s statement:
“In the years leading up to the financial crisis, federal regulators undermined states seeking to protect families and businesses from abuses in the mortgage market. Our action today demonstrates our commitment to promoting state enforcement, not suffocating it.”
The interpretative rule affirms the following:
States can enforce the Consumer Financial Protection Act, including the provision making it unlawful for covered persons or service providers to violate any provision of federal consumer financial protection law.
States can pursue claims and actions against a broad range of entities.
CFPB enforcement actions do not put a halt to state actions.
Read the CFP’s press release here.
The interpretative rule can be found here.