Rutledge Urges Trump Administration to Conduct Cost-Benefit Analysis of CFPB Rules
August 7, 2017
Says, CFPB rules have ‘pre-empted state law and made it harder for business owners to grow jobs’
LITTLE ROCK – Arkansas Attorney General Leslie Rutledge has written to the Director of the Office of Management and Budget (OMB) Mick Mulvaney urging him to direct the Office of Information and Regulatory Affairs (OIRA) to conduct a cost-benefit analysis of all recent and pending Consumer Financial Protection Bureau (CFPB) rules.
“Many of the rules and regulations that have been promulgated by the CFPB since its creation have pre-empted state law and made it harder for business owners to grow jobs,” said Attorney General Rutledge. “The OMB should ensure that regulations are consistent with applicable law, properly consider and balance the costs and benefits and minimize the unnecessary burdens. I urge Director Mulvaney to conduct this review as soon as possible.”
Rutledge, who met with CFPB Director Richard Cordray in Little Rock last summer, has previously expressed concern with the CFPB’s new federal standards for – and limitations on – credit lines, installment loans, deposit advances, automobile-title secured loans and payday loans, as well as the Bureau’s Arbitration rule. In March, Rutledge filed an amicus brief with the U.S. Court of Appeals for the D.C. Circuit arguing that the CFPB is unconstitutional and that Director Cordray should be subject to political appointment.
In the letter to Director Mulvaney, Rutledge notes that a 1993 executive order requires that “significant regulatory actions” be submitted for review to OIRA for an analysis on the cost-benefit analysis and risk assessment. “Significant actions” include an annual effect on the economy of $100 million or more, interference with an action or planned action of another agency, materially altering the budgetary impact of entitlements, grants user fees or other loan programs or raising legal or policy issues arising out of legal mandates.
Led by the South Carolina Attorney General, Rutledge is joined on the letter by attorneys general from Alabama, Arizona, Georgia, Indiana, Kansas, Louisiana, Michigan, Missouri, Nevada, Tennessee, Texas, Utah and West Virginia.