Forty Attorneys General sent this letter (PDF) to Congress regarding the Consumer Financial Protection Agency. The AGs argued that the CFPA should not limit the states’ role in consumer protection.
Excerpt:
Rather than limiting the states’ role in consumer financial protection as some have advocated, we believe Congress should encourage an active and effective partnership between the states and federal financial regulatory agencies to the ultimate benefit of all consumers.
Americans are better served when the states work as partners with the federal government and not a adversaries. The states respect the important role the federal government in financial regulation. We seek not to challenge federal authority but to enhance it and make it more efficient and effective.
We urge members of Congress to provide states with concurrent authority to enforce federal law; and to allow states to enforce their own consumer protection laws and laws of general applicabilty without regards to the charter of the institution but subject to minimum federal standards.