CFPB Rule Clarifying State Authority to Pursue Enforcement Action Is Now Effective

The CFPB clarified the scope of state enforcement authority under the Consumer Financial Protection Act ("CFPA"). The interpretive rule was published in the Federal Register and became effective on May 26, 2022.

As previously covered, the rule affirms a state's ability to (i) enforce the CFPA, (ii) pursue claims and actions against a wide range of entities and (iii) bring concurrent enforcement actions against entities. Further, the interpretive rule reiterates that the CFPB may not prevent states from bringing enforcement actions to stop harm that was not addressed in a parallel CFPB action.