CFPB bolsters enforcement efforts by states


May 19, 2022

Washington, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule that describes states’ authorities to pursue lawbreaking companies and individuals that violate the provisions of federal consumer financial protection law. Because of the crucial role states play in protecting consumers, the Consumer Financial Protection Act grants their consumer protection enforcers the authority to protect their citizens and otherwise pursue lawbreakers.

“In the years leading up to the financial crisis, federal regulators undermined states seeking to protect families and businesses from abuses in the mortgage market,” said CFPB Director Rohit Chopra. “Our action today demonstrates our commitment to promoting state enforcement, not suffocating it.”

When Congress passed the Consumer Financial Protection Act in 2010, it recognized the important role of states in protecting consumers from financial fraud, scams, and other wrongdoing. In the run-up to the Great Recession, federal banking regulators took numerous steps to undermine state regulators and enforcers, deteriorating protections for mortgage borrowers and setting the stage for the subprime crisis. Through the Consumer Financial Protection Act, Congress significantly restricted the ability of federal banking regulators to broadly preempt state consumer financial protections.

In addition, Congress sought to enhance states’ enforcement abilities, so states were empowered to enforce the Consumer Financial Protection Act’s consumer protection provisions. This authority was provided for both state attorneys general and state regulators. In the years since Congress granted this authority, states have used it in 33 public enforcement actions to protect consumers. States brought some of these actions in partnership with the CFPB, while others were brought by individual states or multistate groups that have included almost every state and territory in the country.

These actions are in addition to other collaboration and cooperation efforts among the CFPB and states. The CFPB has memoranda of understanding to promote and enable these efforts with over 20 state attorney general offices, as well as regulators in all fifty states, the District of Columbia, and Puerto Rico.

Today’s interpretive rule affirms:
•    States can enforce the Consumer Financial Protection Act, including the provision making it unlawful for covered persons or service providers to violate any provision of federal consumer financial protection law. This provision covers the Consumer Financial Protection Act itself as well as its 18 enumerated consumer laws and certain other laws, along with any rule or order prescribed by the CFPB under the Consumer Financial Protection Act, an enumerated consumer law, or pursuant to certain other authorities.  
•    States can pursue claims and actions against a broad range of entities. The Consumer Financial Protection Act outlines entities over which the CFPB may exercise its enforcement authority under the statute. States are able to bring actions against a broader cross-section of companies and individuals.  
•    CFPB enforcement actions do not put a halt to state actions. Sometimes states bring enforcement actions in coordination with the CFPB. A state may also bring an enforcement action to stop or remediate harm that is not addressed by a CFPB enforcement action against the same entity. Nothing in the Consumer Financial Protection Act precludes these complementary enforcement activities that serve to protect consumers at both the national and state levels.

Today’s announcement is part of the CFPB’s expansion of its efforts to support state enforcement activity. The CFPB plans to consider other steps to promote state enforcement of federal consumer financial protection law, including ways to facilitate victim redress.

Read the interpretive rule.


The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces Federal consumer financial law and ensures that markets for consumer financial products are fair, transparent, and competitive. For more information, visit




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PrivateAuto: The first self-service payment app for private vehicle sales

ALPINE, Utah, May 18, 2022 (GLOBE NEWSWIRE) — PrivateAuto is the first self-service, peer-to-peer payment app for private vehicle sales that allows users to verify a driver’s license, eSign the bill of sale, and instantly transfer funds anytime, anyplace. The web app is now live and available nationwide.
PrivateAuto’s transactional marketplace is the only one of its kind, incorporating unique listing options, integrated banking features, and automated workflows to provide users with a complete listing to payment solution.

Some of the app’s features include driver license verification with facial recognition technology, a test drive scheduler, accept/reject/counter offer functionality, eSignable bill of sale, and integrated vehicle financing options. Users can even generate unique window-sticker QR codes for their vehicles and advertise without sharing personal contact information.

In a YouTube video released on April 1, 2022, the CEO of PrivateAuto completed what was once impossible: Using the PrivateAuto app, he purchased a Porsche 911, Carrera, transferring over $100,000 in the parking lot. While most payment apps allow users to transfer up to $5,000, PrivateAuto is the first fintech solution to provide instant and secure payment processing for private party vehicle transactions over $5,000.

Before PrivateAuto, buyers had to gamble with their safety, carrying thousands of dollars in cash to meet with strangers, and sellers had to worry about whether they would receive payment before releasing their vehicle. Today, those fears are a thing of the past, as buyers and sellers now have access to instant, high-volume transactions through PrivateAuto’s safe, simple, and secure app.

“For decades, the private sale has been a clunky and awkward experience for many people. We are proud to be the first true fintech for the private sale allowing two users to safely transact on their terms and not rely on a third party. Our journey is just beginning as we introduce dealer-like services to the private sale without the added cost or hassle,” said Brad Parker, Founder and CEO of PrivateAuto.

For more information about PrivateAuto, the world’s first all-in-one private car selling solution, visit The web app is available now, and the downloadable version will be on the App Store in the summer of 2022.

About PrivateAuto

PrivateAuto is the easiest way to list, meet, and get paid when selling vehicles privately. The only technology-driven, self-service solution to close the deal on your own.

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