On May 19, 2022, the Consumer Financial Protection Bureau issued an Interpretive Rule providing the following interpretations to clarity the scope of State enforcement under Section 1042 and related provisions of the Consumer Financial Protection Act (CFPA).
(1) Section 1042 of the CFPA) allows States (i.e., State attorneys general and State regulators) to enforce any provision of the CFPA, or regulations issued under the CFPA, including section 1036(a)(1)(A) that makes it unlawful for covered persons or service providers to violate the Federal consumer financial laws and section 1036(a)(1)(B) that makes it unlawful for covered persons or service providers to engage in any unfair, deceptive, or abusive act or practice.
(2) The limitations on the CFPB’s authority in sections 1027 and 1029 of the CFPA generally do not constrain States’ enforcement authority under section 1042.
(3) Section 1042 does not restrict States from bringing concurrent enforcement actions with the CFPB.
Full Memorandum
