In May 2022, the Consumer Financial Protection Bureau (CFPB) did something rare for federal agencies: It declared that state attorneys general have broader authority to enforce certain federal laws than does the federal government itself. CFPB's declaration came in the form of an interpretive ruling that instructed states of their ability to enforce the Consumer Financial Protection Act (CFPA) free from limitations, like industry carve outs, that apply to CFPB.

Although the ability for states to enforce the CFPA is as old as the Act itself and has been used on occasion, the new interpretation highlights a crucial consideration for businesses whose activities fall within the ambit of the CFPA's consumer financial protections. Under President Biden, CFPB Director Rohit Chopra has forcefully returned CFPB to prominence through high-profile subpoenas to big tech companies, the unwinding of COVID-measures that gave companies regulatory flexibility, and the expansion of CFPB's strongest tool—its power to target Unfair, Deceptive and Abusive Acts and Practices (UDAAP). The new Director is seeking to flex and strengthen all of CFPB's dormant muscles. This is a significant shift from the Trump CFPB, which focused on rolling-back rulemaking, relaxing enforcement priorities to target more hard and true violators, and providing clarity to industry participants on the rule of law. And now, CFPB seeks to recruit to its mission the 50 states to enforce federal protections.