States Face Limits in Stepping Up as CFPB Retreats

Democratic-led states have vowed to fill the void as the Consumer Financial Protection Bureau dials back its enforcement efforts, but state attorneys general say their powers are limited.

While attorneys general have state consumer protection laws at their disposal, they lack the CFPB’s ability to examine banks and other financial firms to spot problematic behavior. The Dodd-Frank Act gave state attorneys general the power to enforce federal consumer protection laws, but that authority remains untested eight years after enactment. State attorneys general also face limited resources and a long list of competing priorities outside of the consumer finance space.

Having ...