CFPB Withdraws Rule That Would Have Eased State Notification Requirements

WASHINGTON—The Consumer Financial Protection Bureau has officially withdrawn a proposed rule that would have eliminated the requirement for state officials to notify the Bureau when taking enforcement actions under the Consumer Financial Protection Act (CFPA).

The rule, published as a direct final rule on May 21, 2025, aimed to rescind the existing procedures that mandate states to inform the CFPB before pursuing their own enforcement efforts under the federal consumer protection law. At the time, the Bureau stated it would withdraw the rule if significant adverse comments were received by June 20.

In a notice published in the Federal Register, the CFPB said it had received such comments and is now withdrawing the rule. “The Bureau will address comments received in a subsequent rulemaking,” the agency noted.

The withdrawal means the current notification procedures remain in place, preserving a coordination mechanism between state officials and the CFPB when enforcing the CFPA.

The CFPB also noted that this withdrawal is not considered a “significant regulatory action” under Executive Order 12866 and thus is not subject to additional review requirements.

No timeline has yet been announced for any future rulemaking on the matter.