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Monday, November 28, 2016

State Regulators Seek To Step Up Enforcement

By: McIntyre & Lemon, PLLC

Law360 reports that state attorneys general and financial regulators where President-elect Trump did not receive majority support are expected to step up their policing of state financial markets.

State officials are doing this in response to an expectation that a Trump administration may dial back on enforcement of financial regulations.

State attorneys general and financial regulators from so-called blue states like New York, California and Massachusetts have long been aggressive in enforcing state consumer financial protection laws and federal statutes where they have authority. But while regulators and financial regulators in those states in many ways had the support of their federal counterparts during the Obama years, it is possible they may run into fights with President-elect Donald Trump’s team.

Trump has stated his disdain for the 2010 Dodd-Frank Act, President Barack Obama’s landmark financial reform law, calling it a “disaster” on several occasions during the campaign.

It is widely believed that Republicans in Congress who share Trump’s view will work with him to defang the law and the regulators that enforce it — including the CFPB.

Several federal laws, including the Truth In Lending Act and the Fair Credit Reporting Act, specifically give state attorneys general enforcement authority. They also have the ability to enforce state consumer protection laws and go after unfair, deceptive acts and practices.

With the CFPB likely to be dialed back, state attorneys general are expected to increase their enforcement efforts.