Mulvaney Wants States to Lead Consumer Enforcement in Speech to State AGs

Interim Consumer Financial Protection Bureau (CFPB) Director Mick Mulvaney stopped at the National Association of Attorneys General meeting this week to speak with top state litigators about future priorities and policy changes at the federal consumer agency.

Mulvaney noted that the Bureau will focus on enforcement and education. He felt that when companies behave poorly, it was partially a result of the CFPB failing to education them properly. The CFPB would not continue pressing new rules on the industry, but rather strive for “accountability, transparency, and collaboration.”

The interim director also discussed new approaches to working with industry participants. He recognized that the agency “previously listened more than we heard” and would push to make consultations and industry input more than simply “checking a box.”

Finally, Mulvaney asked state attorneys general and bank regulators to work with the CFPB on enforcing laws. He added that states know best about the types of consumer laws that work for their constituents. Mulvaney brought up one case the agency had recently dismissed in which two separate states had filed briefs against the CFPB’s position.

Even before Mulvaney encouraged states to take a lead role in the enforcement of consumer finance laws, a group of Democratic state AGs vowed to increase enforcement efforts in the wake of leadership changes at the CFPB. Encouragement now from the Bureau could help solidify the role tribal regulatory commissions play in overseeing the activities of financial service providers on tribal lands.