Consumers in Minnesota and the rest of the nation have reason to rejoice. The Consumer Financial Protection Bureau (CFPB) has issued a new rule. This decision is one that grants states a much wider range of powers to protect consumers. The new rule is set to take effect at once. Here are a few things you need to know.
States have the power to protect consumers
One of the main tenets of the new Consumer Protection law is the major upgrade in power that it gives to the states to protect consumers. As a result of the new rule, states will now have the ability to enforce a much wider canon of consumer protection laws. They can punish any violations of consumers’ basic rights that service providers covered under the law may commit.
As the new rule makes quite clear, the individual states now have a vastly expanded repertoire of powers. This will include the ability to pursue the enforcement of consumer protection laws against a wider range of individuals and companies. In fact, states can now pursue more of them than the CFPB on its own.
States can work independently or with the CFPB
You should be aware that individual states, very much including Minnesota, can pursue cases on their own initiative. They can also work along with the CFPB to provide extra power to critical cases against major wrongdoers. As a result, consumers will now have a much more comprehensive umbrella of protection against instances of fraud.
This is a rule that is being hailed as a breakthrough by experts in the consumer protection industry. It will give states the power to punish offenders by expanding their jurisdiction to cover these kinds of cases. It will also enable the CFPB to function more effectively.