AG Pax­ton Leads Response to Con­sumer Pro­tec­tion Bureau's Reg­u­lat­ing Fees Charged by Consumer Financial Firms

Additional federal oversight would not only be duplicative, but harmful to consumers if, as it appears, CFPB intends to crowd out state regulation in this area

Texas Insider Report: AUSTIN, Texas – Attorney General Ken Paxton is co-leading with Utah a multistate comment letter addressed to the Consumer Financial Protection Bureau (CFPB), responding to CFPB’s request for information regarding fees charged by providers of consumer financial services and products.

The responding states intend to cooperate and supply CFPB with information about these fees; but, in the letter, they advise that state regulators and attorneys general already regulate such fees in a manner that is appropriate for each state and its citizens. Additional federal oversight would not only be duplicative but would in fact be harmful to consumers if, as it appears, CFPB intends to crowd out state regulation in this area.  

The letter also notes that Congress conferred on CFPB only limited authority to regulate the amounts of fees charged in the consumer financial services market, and expressly restricted its ability to set prices for such services. The letter counsels that CFPB should observe the limits that Congress imposed.