CFPBFinal Rule
Authority of States to Enforce the Consumer Financial Protection Act; Rescission
Finance & Banking
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Summary
This regulation removes rules that allowed individual states to enforce federal consumer financial protection laws. The change means states will have less power to investigate and penalize banks, lenders, and other financial companies that break consumer protection rules, shifting more authority back to the federal Consumer Financial Protection Bureau.
Key Points
- 1States can no longer use their own authority to enforce the federal Consumer Financial Protection Act against financial companies
- 2State attorneys general will lose their ability to independently investigate and sue financial institutions for violations of consumer protection laws
- 3The federal Consumer Financial Protection Bureau becomes the primary enforcer of these protections instead of sharing enforcement power with states
- 4Consumers may have fewer options for getting help since they can no longer rely on state-level legal action against financial companies
- 5This change primarily affects how banks, credit card companies, payday lenders, and other financial businesses are regulated and held accountable
Key Dates
Published
May 15, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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