Banking

McHenry, Luetkemeyer, Emmer search data on CFPB collaboration with state AGs

Expressing concern that the CFPB is performing opposite to its authorizing statute, three senior members of the House Financial Services Committee yesterday sought data on the CFPB’s collaborations with state attorneys basic enforcement actions. Earlier this 12 months, the bureau issued an interpretive rule increasing the power of state AGs to deliver enforcement actions for violations of federal regulation—together with actions in opposition to the identical entity for harms not being handle by the CFPB—and introduced greater than 20 state AG partnerships.

“It is clear that state attorneys general may enforce the CFPA in cases where the CFPB has not. But the statute does not allow for a state attorney general to become a party to an existing CFPB enforcement action,” stated Rep. Patrick McHenry (R-N.C.), Blaine Luetkemeyer (R-Mo.) and Tom Emmer (R-Minn.). “It is therefore inappropriate for the CFPB to recruit a state attorney general that is not otherwise investigating a company, to pursue enforcement as a means of intimidation.”

The lawmakers sought data from the bureau on the statutory authority for its exercise with state AGs and what safeguards the bureau is using to stop redundant enforcement actions, in addition to communications between the bureau and state AG places of work.

Gabriel

A news media journalist always on the go, I've been published in major publications including VICE, The Atlantic, and TIME.

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