CFPB Says TILA Does Not Preempt State Commercial Financial Disclosure Laws

The CFPB determined that the commercial financing disclosure laws required under California, New York, Utah and Virginia state law are not preempted by the Truth in Lending Act ("TILA").

In 2022, the CFPB received a request from an industry trade association to determine whether the New York commercial financing disclosure law is preempted by TILA. After releasing its preliminary determination, which concluded that there was no conflict between TILA and the state commercial financing laws, the CFPB requested public comment. Based on an analysis of the comments, the CFPB affirmed its preliminary determination that the states have broad authority to create their own protections for residents within and outside the scope of TILA. The CFPB concluded that the laws created by the states are intended to provide protections for businesses by making clear the credit terms available to them. The CFPB concluded that this is beyond the scope of TILA’s statutory consumer credit purposes.