State AGs Monitoring Federal Rollback in Regulations
While the auto finance industry made certain legislative and regulatory gains dating back to late last year on the federal level, it continues to be an industry regulated in all 50 states, relying on its compliance departments for expert guidance in navigating state rules and regulations.
Last week at the AFSA/NADA Forum, Danielle Fagre Arlowe, AFSA’s Senior Vice President for State Government Affairs, reported that several state attorneys general and state legislatures are taking steps to pick up the slack where they feel the Bureau of Consumer Financial Protection (BCFP) and the Trump Administration may be pulling back.
For example, Pennsylvania Attorney General Josh Shapiro established a mini-BCFP as part of his office and bought in four former BCFP staffers who worked under former Director Richard Cordray at the Bureau.
Maryland’s legislature is concerned with federal rollback and is monitoring changes in federal law as a way to propose counter changes to existing state consumer protection laws. The Maryland legislature has created the Consumer Financial Protection Commission.
The Tennessee Attorney General’s office, under Herbert Slattery, is growing its consumer protection division and has hired an attorney to deal with consumer issues, especially in the area of automotive guidance. The AG’s office enforces the Tennessee Consumer Protection Act.
Phil Murphy, the first-term governor of New Jersey had, as part of his platform, a state CFPB office attached to the Attorney General’s office. In New Jersey, the AG is appointed by the governor, unlike other states where the AG is an elected position.Recently the state AGs who are Democrats sent a letter to Congress urging it not to vote for the joint resolution effectively repealing the CFPB’s 2013 auto guidance. The joint resolution passed in both houses and was signed by President Trump.
June 28th, 2018 by Dan Bucherer