The CFPB today released an interpretive guideline specifying its view that state regulators and state attorney generals of the United States have enforcement authority with regard to all arrangements of the Consumer Financial Protection Act, based upon its analysis of Section 1042 of the CFPA.
The interpretive guideline likewise keeps in mind that while the CFPB’s enforcement authority is restricted under Sections 1027 and 1029 of the CFPA, such restrictions “do not extend to states exercising their enforcement authority under section 1042.” Among other things, the interpretive guideline notes that “states can enforce [federal consumer financial laws]to the full extent authorized under those laws . . . including against national banks and federal savings associations,” indicating that the Chopra-led CFPB plans to translate its preemptive authority as restricted. Additionally, the interpretive guideline clarifies that states might pursue enforcement actions under Section 1042 “even if the bureau is pursuing a concurrent action against the same entity.”
In a news release on the interpretive guideline, the CFPB likewise indicated that it “strategies to think about other actions to promote state enforcement of federal customer monetary defense law, consisting of methods to help with victim redress. ABA personnel are presently examining the interpretive guideline.