Rutledge Leads Coalition that Supports Rescinding CFPB Rule
May 16, 2019
12 states send letter to CFPB Director urging rule to keep states as the frontline consumer defenders
LITTLE ROCK – Arkansas Attorney General Leslie Rutledge co-led a coalition of 12 states, along with the Indiana Attorney General, in support of the rule proposed this year by the Consumer Financial Protection Bureau (CFPB) that would replace a 2017 CFPB rule governing small, short-term loans. The states contend that the CFPB should recognize them as the frontline consumer defenders and that the 2017 rule improperly tried to cut the states out of the consumer-protection picture. This hurt consumers’ freedom to choose which financial products best serve their own interests.
“The CFPB’s proposed rule would return consumer protection to the states,” said Attorney General Rutledge. “The 2017 rule took a one-size-fits-all approach to short-term lending that did not account for individual consumers’ needs. States understand their citizens’ needs better than Washington bureaucrats ever could. The CFPB has realized this, and the proposed rule returns powers to the states to make sure their citizens are protected, along with allowing additional innovative solutions to enhance the consumers’ access to credit on fair terms.”
In the letter, the attorneys general wrote, “The proposed rule respects the states’ role in maximizing consumers’ welfare by ensuring both that consumers are protected from illegal practices and that they have access to credit.”
Arkansas, along with Indiana, led the group which included Alabama, Georgia, Kansas, Louisiana, Oklahoma, South Carolina, South Dakota, Texas, Utah and West Virginia.