ATLANTA, GA – Attorney General Chris Carr, along with 13 other attorneys general, today filed a brief in opposition to a new rule implemented by the Biden administration’s Consumer Finance Protection Bureau (CFPB). This new rule seeks to unlawfully expand the CFPB’s authority to encompass many practices that Congress chose not to grant the agency with the power to regulate. This includes the investigation and punishment of all acts of supposed discrimination in the consumer finance industry.

“Rather than adhere to the legislative process, the Biden administration has taken executive action to impose far-reaching requirements on the consumer finance industry,” said Carr. “This new rule is a clear example of federal overreach, falls beyond the scope of any legitimate source of authority, and impacts our state’s ability to regulate within our borders. These unlawful tactics have been repeatedly rejected by the courts, and we will fight to ensure this latest attempt to circumvent the law is put to a stop as well.”

As passed by Congress and signed into law by President Barack Obama, the Dodd-Frank Act provides the CFPB with specific authorities for regulating the consumer finance industry. The law does not allow for the agency to investigate or punish general discrimination. Despite this limitation, the CFPB has claimed the power to police all acts of discrimination, as defined by the agency, which could include even so-called disparate impact claims. This novel rule was introduced as part of a supposedly routine update to the CFPB’s examination manual and without any opportunity for public notice and comment.

In their amicus brief, the attorneys general argue that the rule:

  • Exceeds the authority of the CFPB;
  • Illegally bypassed notice and comment; and
  • Seeks to avoid judicial review.

The brief was filed in the U.S. District Court for the Eastern District of Texas (Tyler Division). A copy of the brief can be found Download this pdf file. here .

Georgia led this effort, while the following states also joined in filing the brief: Alabama, Arizona, Arkansas, Idaho, Indiana, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, Texas, Utah and West Virginia.