Consumer Protection Bureau Forges Partnership with State AGs

At a summit held inrnCharlotte, North Carolina on Monday, the new Consumer Financial ProtectionrnBureau (CFPB) and the Presidential Initiative Working Group of the NationalrnAssociation of Attorneys General (NAAG) released nine principles which a pressrnrelease described as “the first step in forging a new partnership betweenrnfederal and state officials to protect consumers of financial products andrnservices.”  </p

The Joint Statement ofrnPrinciples grew out of goals set by the CFPB and NAAG to protect consumers ofrnfinancial services and products through provision of clear rules, protectrnlaw-abiding businesses from unfair competition and finding efficient andrneffective ways to promote understanding and address concerns about thosernproducts and services. </p

Elizabeth Warren, Assistantrnto the President and Special Advisor to the Secretary of the Treasury on thernCFPB, told the group that the partnership has the potential to fix brokenrnconsumer financial markets. Dodd-Frankrnauthorized the AGs to enforce certain regulations that CFPB will write and inrnmany cases to enforce the statute directly. rnConsistent and effective enforcement of consumer financial laws willrnrequire sustained collaboration and Warren said CFPB is already trying torndetermine how CFPB can be a resource for the state officials.  </p

Warren told the Working Group that there would be arntwo pronged approach to fixing the broken consumer financial markets. First, it must be made easier for a family tornsee the costs and risks of a product up front and compare that product to twornor three others.  Second, and herrnprepared remarks stressed this, CFPB will enforce the law.  The Joint Principals that the Working Grouprnand the Bureau have laid out will help to achieve these objectives.  Under the Agreement the parties will:</p<ul class="unIndentedList"<liDevelop joint training programs and share information aboutrndevelopments in state and federal laws that apply to consumer financialrnproducts or services;</li<liShare information about conduct and practices in the markets forrnconsumer financial products or services to inform enforcement policies andrnpriorities;</li<liEngage in regular consultation to identify mutual enforcementrnpriorities that will ensure effective and consistent enforcement of the consumerrnprotection laws;</li<liSupport each other in the enforcement of the laws that protectrnconsumers of financial products or services, including joint or coordinatedrninvestigations of wrongdoing and coordinated enforcement actions;</li<liPursue legal remedies to foster transparency, competition, and fairnessrnin the markets for consumer financial products or services across state linesrnand without regard to corporate forms or charter choice for those providers whorncompete directly with one another in the same markets; </li<liDevelop a consistent and enduring framework to share investigatoryrninformation and to coordinate enforcement activities to the extent practicablernand consistent with governing law;</li<liShare, refer, and route complaints and information between the CFPB andrnthe state attorneys general; </li<liAnalyze and leverage input from consumers and the public in order tornadvance their mutual goal of protecting consumers; and </li<liCreate and support technologies to enable data sharing and proceduresrnthat will support complaint cooperation.â€