CFPB Urges New York State to Pass Meaningful Consumer Protection Reform

Posted by Russell W. DombrowMar 21, 20240 Comments

The Consumer Financial Protection Bureau (CFPB) does not have a monopoly when it comes to policing abusive conduct. In 2010, when #Congress passed the Consumer Financial Protection Act, it made sure that state attorneys general, state regulators, and certain banking regulators were also empowered to root out harmful corporate misconduct. States in particular are at the front line of identifying abuses on the ground. They can step in immediately to stop wrongdoing, or can partner with the #CFPB to marshal additional resources to protect their residents.

The federal prohibitions against unfair, deceptive, or abusive acts or practices protect people from a wide range of corporate misconduct, including pitching products to consumers that are set up to fail or using confusing digital dark patterns to prevent consumers from canceling services they do not want. New York State is currently considering legislative reforms to strengthen the state's consumer protection laws to further protect people from this sort of bad business behavior.

Last week, the CFPB wrote to New York Governor #Hochul and state leaders to highlight the importance of the ban on abusive conduct. The CFPB shared how the ban would arm the state with more tools to combat corporate misconduct.

The CFPB continues to crack down on abusive conduct by large corporations. In February, the CFPB issued guidance explaining that it can be abusive for comparison-shopping tools, including websites that recommend credit cards, to take financial kickbacks and push consumers to more expensive cards. And in November, the CFPB ordered Toyota Motor Credit to pay $60 million for abusive law breaking and other misconduct, including making it unreasonably difficult for consumers to cancel unwanted add-on products.

Read the #CFPB letter to @GovHochul here

Read the #CFPB letter to #NYS Senate leaders here

Read the #CFPB letter to #NYS Assembly leaders here

Learn more about Fair Deal NY here

Learn what the Consumer and Small Business Protection Act (CPSA) does to protect New York State #consumers here