Rule2025-08640
Rescission of State Official Notification Rules
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 21, 2025
Effective
July 21, 2025
Issuing agencies
Consumer Financial Protection Bureau
Abstract
This direct final rule rescinds the Consumer Financial Protection Bureau's (Bureau's) procedures by which a State official must notify the Bureau when the official takes an action to enforce the Consumer Financial Protection Act.
Full Text
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<title>Federal Register, Volume 90 Issue 97 (Wednesday, May 21, 2025)</title>
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[Federal Register Volume 90, Number 97 (Wednesday, May 21, 2025)]
[Rules and Regulations]
[Pages 21691-21692]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-08640]
[[Page 21691]]
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CONSUMER FINANCIAL PROTECTION BUREAU
12 CFR Part 1082
[Docket No. CFPB-2025-0016]
RIN 3170-AB43
Rescission of State Official Notification Rules
AGENCY: Consumer Financial Protection Bureau.
ACTION: Direct final rule; request for comments.
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SUMMARY: This direct final rule rescinds the Consumer Financial
Protection Bureau's (Bureau's) procedures by which a State official
must notify the Bureau when the official takes an action to enforce the
Consumer Financial Protection Act.
DATES: The final rule is effective July 21, 2025, unless significant
adverse comments are received by June 20, 2025. For additional
information, see the SUPPLEMENTARY INFORMATION below.
ADDRESSES: You may submit responsive information and other comments,
identified by Docket No. CFPB-2025-0016, by any of the following
methods:
<bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Follow the instructions for submitting comments. A brief summary of
this document will be available at <a href="https://www.regulations.gov/docket/CFPB-2025-0016">https://www.regulations.gov/docket/CFPB-2025-0016</a>.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#97a5a7a5a2bad3d1c5bac4e3f6e3f2bac5f2e4f4fee4e4fef8f9d7f4f1e7f5b9f0f8e1"><span class="__cf_email__" data-cfemail="32000200071f7674601f61465346571f605741515b41415b5d5c72515442501c555d44">[email protected]</span></a>. Include Docket
No. CFPB-2025-0016 in the subject line of the message.
<bullet> Mail/Hand Delivery/Courier: Comment Intake--Rescission of
State Official Notification Rules, c/o Legal Division Docket Manager,
Consumer Financial Protection Bureau, 1700 G Street NW, Washington, DC
20552.
Instructions: The Bureau encourages the early submission of
comments. All submissions should include the agency name and docket
number. Because paper mail is subject to delay, commenters are
encouraged to submit comments electronically. In general, all comments
received will be posted without change to <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
All submissions, including attachments and other supporting materials,
will become part of the public record and subject to public disclosure.
Proprietary information or sensitive personal information, such as
account numbers or Social Security numbers, or names of other
individuals, should not be included. Submissions will not be edited to
remove any identifying or contact information.
FOR FURTHER INFORMATION CONTACT: George Karithanom, Regulatory
Implementation and Guidance Program Analyst, Office of Regulations, at
202-435-7700. If you require this document in an alternative electronic
format, please contact <a href="/cdn-cgi/l/email-protection#a9eaeff9ebf6e8cacaccdadac0cbc0c5c0ddd0e9cacfd9cb87cec6df"><span class="__cf_email__" data-cfemail="480b0e180a17092b2b2d3b3b212a2124213c31082b2e382a662f273e">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Direct Final Rulemaking Procedure
This is a direct final rulemaking. A significant adverse comment is
one that opposes the rule and raises, alone or in combination with
other comments, a sufficiently serious issue under each of the
independent grounds provided to support the rule that additional
consideration and a substantive response are required. If significant
adverse comments are received, notice will be published in the Federal
Register before the effective date either withdrawing the rule or
issuing a new final rule that responds to significant adverse comments
and carries a new effective date.
II. Background
Section 1042(b) of the Consumer Financial Protection Act of 2010
(CFPA) requires States to notify the Bureau and ``the prudential
regulators,'' see 12 U.S.C. 5481(24), before ``initiating any action in
a court or other administrative or regulatory proceeding against any
covered person as authorized by subsection (a) [of section 1042] to
enforce any provision'' of the CFPA. See 12 U.S.C. 5552(b)(1)(A). By
statute, such notice is required to be ``timely'' in the ordinary
course or ``immediately upon instituting the action or proceeding'' in
the case of an emergency. 12 U.S.C. 5552(b)(1)(B). And the CFPA
requires that the notice contain ``a copy of the complete complaint to
be filed'' and a written description of ``such action or proceeding,''
12 U.S.C. 5552(b)(1)(A), as well as a description of the identity of
the parties, the alleged facts underlying the proceeding, and ``whether
there may be a need to coordinate the prosecution of the proceeding so
as not to interfere with any action, including any rulemaking,
undertaken by the Bureau, a prudential regulator, or another Federal
agency.'' 12 U.S.C. 5552(b)(1)(C). On June 29, 2012, the Bureau issued
regulations, codified at 12 CFR 1082.1, regarding States' obligations
to notify the Bureau and prudential regulators of actions covered by
section 1042.
III. Analysis
Pursuant to the Bureau's policy of eliminating unnecessary
regulatory burdens and rescinding rules that are not necessary to
effectuate Congress's statutes, the Bureau is rescinding the
regulations related to state notification codified at 12 CFR 1082.1.
The regulations at 12 CFR 1082.1, with only minor tweaks that are not
necessary to provide the Bureau or the prudential regulators adequate
notice of State actions, merely restate the notification requirements
codified in section 1042(b). As such, the notification regulations are
unnecessary and should be eliminated from the Code of Federal
Regulations. Where Congress's statutes are sufficiently clear and
prescriptive, regulations do little more than increase costs and cause
confusion, and so are unnecessary.
IV. Legal Authority
Section 1042(c) of the CFPA, 12 U.S.C. 5552(c).
V. Section 1022 Analysis
In developing this rule, the Bureau has considered the potential
benefits, costs, and impacts as required by section 1022(b)(2)(A) of
the CFPA, 12 U.S.C. 5512(b)(2)(A). This rule will reduce regulatory
burdens on State Officials and does not impose any obligations on
consumers or have any direct impact on their access to consumer
financial products or services. Further, it has no unique impact on
insured depository institutions or insured credit unions with less than
$10 billion in assets, as described in section 1026(a) of the CFPA.
Finally, it does not have any unique impact on rural consumers.
VI. Procedural Matters
A. Regulatory Flexibility Act
The Regulatory Flexibility Act generally requires an agency to
conduct an initial regulatory flexibility analysis (IRFA) and a final
regulatory flexibility analysis of any rule subject to notice-and-
comment rulemaking requirements unless the agency certifies that the
rule will not have a significant economic impact on a substantial
number of small entities (SISNOSE). The Bureau is also subject to
specific additional procedures under the RFA involving convening a
panel to consult with small business representatives before proposing a
rule for which an IRFA is required.
This rule's only effect is to clarify State Officials' statutory
obligations, see 12 U.S.C. 552(b). It has no effect on small entities
of any kind.
[[Page 21692]]
Accordingly, the Director hereby certifies that this rule does not
have a significant economic impact on a substantial number of small
entities. Thus, neither an IRFA nor a small business review panel is
required.
B. Paperwork Reduction Act
This rule is deregulatory and will eliminate the more substantial
information-collection requirements imposed by the regulations codified
at 12 CFR 1082.1. It does not impose any additional collection
requirements.
List of Subjects in 12 CFR Part 1082
Banks, Banking, Consumer protection, Credit unions, Law
enforcement, National banks, Savings associations, State and local
governments.
PART 1882--[REMOVED AND RESERVED]
0
For the reasons set forth above, under the authority of 12 U.S.C.
5552(c), the Bureau is removing and reserving 12 CFR part 1082.
Russell Vought,
Acting Director, Consumer Financial Protection Bureau.
[FR Doc. 2025-08640 Filed 5-20-25; 8:45 am]
BILLING CODE 4810-AM-P
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