The Consumer Financial Protection Bureau's headquarters in Washington, D.C. Photo: Diego M. Radzinschi/ALM
The CFPB has rescinded a regulation requiring state officials to notify the agency when initiating legal actions under the Consumer Financial Protection Act (CFPA). The rule change, published Wednesday in the Federal Register, is set to take effect July 21, 2025, unless significant adverse comments are submitted by June 20.
The rescinded rule, originally codified at 12 CFR 1082.1, required states to provide the CFPB and other federal regulators with a copy of the complaint and a description of any enforcement action filed against a financial institution under CFPA authority. The Bureau stated that this regulation was duplicative, merely reiterating notification requirements already embedded in statute (12 U.S.C. § 5552), and thus unnecessary.
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“Where Congress’s statutes are sufficiently clear and prescriptive, regulations do little more than increase costs and cause confusion,” the CFPB stated in the final rule, which was signed by Acting Director Russell Vought.
According to the Bureau’s Section 1022 analysis, the rescission has no unique impact on credit unions, especially those under $10 billion in assets, and does not impose or alter any compliance burdens for these institutions. The CFPB emphasized that the rule change only affects procedures for state officials and will not reduce the CFPB’s ability to monitor or coordinate enforcement activity.
The final rule also noted that the action will not affect rural consumers, credit union members or consumers' access to financial services, and that it eliminates unnecessary paperwork burdens.
While the rescission represented a streamlining move for state regulators, it did not alter the core responsibilities or protections for credit unions. State attorneys general and regulators still must notify the CFPB when pursuing actions under the CFPA, but now will do so under the original statute alone, not through a separate regulatory mandate.
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
