On May 19, 2025, American Banker quotedJonathan Pompan on the Consumer Financial Protection Bureau (CFPB) withdrawing the previous administration’s guidance which had expanded states' rights. According to the article, the previous guidance has allowed individual states to enforce violations of federal consumer protection laws.
Now, the organization’s acting director is pivoting and limiting states from enforcing federal law. “One way to think about this is the CFPB is now telling state AGs to stick to their own state laws and not federal laws,” said Pompan.
He also touched on the rescission which walks back a 2022 interpretive rule which enabled states to enforce other federal consumer financial laws. “The rescission narrows the interpretation of how broadly the Section 1042 authority can be used, not the statute itself," Pompan said. “It certainly walks back the CFPB's prior blessings for state enforcement through section 1042 of the CFPA.”
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