ORLANDO, Fla. — The uncertain status of the Consumer Financial Protection Bureau could result in more state-based regulations.
In one recent example, New York State Attorney General Letitia James on March 13 announced legislation to establish the Fair Business Practice Act, Christy Hancock, partner at law firm Bradley LLP, said today during a panel at CBA Live 2025.
The bill is designed to enforce:
- Transparency in pricing;
- Fees; and
- Credit lending.
“This is fresh legislation right now, but if it gets enacted it’s really going to expand New York’s consumer protection laws,” Hancock said.
New York has historically been aggressive in enforcing its laws, so financial institutions should be prepared if the state Legislature is doubling down, she said.
“When you have a New York Legislature saying they feel like their current arsenal is not robust enough, and they’re going to try to change that, that is absolutely worth keeping an eye on,” Hancock said, adding that expensive penalties could become more frequent.
More states could follow suit, Lynn Woosley, managing director at financial services consulting firm Asurity Advisors, told Bank Automation news.
“There are some states that historically have been more aggressive on consumer protection: New York, California, Massachusetts and Rhode Island,” Woosley said. But other states have State Community Reinvestment Act requirements, which sometimes involve evaluating fees, she said.
Consumers are always going to find a way to have their voices heard, whether it’s through the CFPB or a state regulator, Hancock said on the panel.
“If the CFPB has turned out the lights and no one’s actually monitoring the complaint portal, the consumer still expects a response from someone, and so if they don’t get it from that avenue, they’re going to pursue others,” Hancock said.
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