Rutledge Calls on the CFPB to Convene a Conference of States Before Proposing Preemptive Federal Standards
May 17, 2016
LITTLE ROCK – Arkansas Attorney General Leslie Rutledge has asked the director of the Consumer Financial Protection Bureau (CFPB), Richard Cordray, to convene a conference of the states to discuss the framework and ideas contained in a March 26 outline of potential new federal standards for – and limitations on – credit lines, installment loans, deposit advances, automobile-title secured loans and payday loans.
“The outline from the Consumer Financial Protection Bureau ignores the interests of the states and seeks to impose a one-size-fits-all federal approach,” said Attorney General Rutledge. “If the Bureau moves ahead with its proposal, I fear that it will negate reasonable policies that Arkansas and other states currently have in place to protect consumers and at the same time allow the free market to provide needed services like credit lending. I am calling on Director Cordray, a former state attorney general, to recognize the need to hear from the states on these issues and to convene a conference as soon as possible before taking any further action.”
Rutledge's letter explains that such a conference would help demonstrate that Cordray’s commitment to cooperative federalism is real. It would also provide an opportunity to discuss the various state regulatory and enforcement systems, what the states have learned from their own longstanding efforts to protect consumers from predatory, dishonest and sharp lending practices and how unnecessary federal-state conflict might be avoided.
Rutledge notes in the letter that the potential rule will conflict with, constrict and otherwise unnecessarily interfere with existing state consumer protection laws, lending standards, licensing systems and regulatory enforcement mechanisms.