CFPB Strengthens States' Authority to Pursue Enforcement Actions

The CFPB issued an interpretive rule clarifying the scope of State enforcement authority under provisions of the Consumer Financial Protection Act ("CFPA").

The rule affirmed that:

• States can enforce the CFPA, including prohibiting covered entities from violating any provision of the CFPA;
• States can pursue claims and actions against a broad range of entities, including non-financial entities;
• the CFPB may not prevent States from bringing enforcement actions to stop or remediate harm that was not addressed in a parallel CFPB enforcement; and
• States may take enforcement actions against entities even if the CFPB is pursuing concurrent actions.

CFPB Director Rohit Chopra stated the interpretive rule demonstrates the agency's "commitment to promoting state enforcement, not suffocating it."