LITTLE ROCK, Ark. (Legal Newsline) – Arkansas Attorney General Leslie Rutledge has released comments about the Consumer Financial Protection Bureau’s (CFPB) decision to move forward with federal standards and limitations on credit lines, installment loans, deposit advances, automobile-title secured loans and payday loans.
“By disregarding my request and the concerns raised by many others at the state and federal levels about sweeping federal standards that would govern small dollar lending, Director Richard Cordray has made it clear that he is not interested in cooperative federalism,” Rutledge said.
Rutledge believes that the CFPB’s actions equate to a one-size-fits-all federal approach that is unacceptable. According to her, the states already have reasonable policies to protect consumers, while also upholding the free market system.
“My office will review this proposed rule from the CFPB and evaluate the best course of action,” Rutledge said.
U.S. House of Representatives Committee on Financial Services Chairman Jeb Hensarling (R-Texas) released a statement as well, citing the CFPB chairman’s refusal to discuss concerns brought about by Rutledge and others.
“When I asked Director Cordray to identify states he believes do not adequately protect consumers of small dollar lending, he declined to do so,” Hensarling said. “He also ignored concerns raised by state leaders like Arkansas Attorney General Leslie Rutledge and Indiana Attorney General Greg Zoeller.”