Rutledge Disappointed in CFPB for Disregarding Her Request and Moving Forward with Controversial Rule
June 2, 2016
LITTLE ROCK – Arkansas Attorney General Leslie Rutledge expressed disappointment with the Consumer Financial Protection Bureau (CFPB) for moving forward and proposing new federal standards for – and limitations on – credit lines, installment loans, deposit advances, automobile-title secured loans and payday loans. The CFPB disregarded Rutledge’s request to convene a conference of the states to discuss the potential impact and need for new federal regulations.
“By disregarding my request and the concerns raised by many others at the state and federal levels about sweeping federal standards that would govern small dollar lending, Director Richard Cordray has made it clear that he is not interested in cooperative federalism,” said Attorney General Rutledge. “This one-size-fits-all federal approach from an unaccountable bureaucrat and agency ignores the interests of the states and will negate reasonable policies that already exist to protect consumers while at the same time allowing the free market to function properly. My office will review this proposed rule from the CFPB and evaluate the best course of action.”
Rutledge noted in her letter last month that the potential rule would conflict with, constrict and otherwise unnecessarily interfere with existing state consumer protection laws, lending standards, licensing systems and regulatory enforcement mechanisms.
U.S. House of Representatives Committee on Financial Services Chairman Jeb Hensarling (R-Texas) said in a statement today, “When I asked Director Cordray to identify states he believes do not adequately protect consumers of small dollar lending, he declined to do so. He also ignored concerns raised by state leaders like Arkansas Attorney General Leslie Rutledge and Indiana Attorney General Greg Zoeller.”