CFPB Withdraws Proposed Changes To State Official Notification Procedures

The CFPB on July 21, 2025, withdrew a direct final rule that would have "rescinded procedures by which a State official must notify the Bureau when the official takes an action to enforce the Consumer Financial Protection Act."

As previously reported by Holland & Knight, the notification rules established by Section 1042(B) of the Consumer Financial Protection Act (CFPA) require state attorneys general and other regulators to provide the CFPB 10 days' notice before initiating any action against a covered person. The notice must include details regarding affected parties, the factual background and a copy of the complaint. The direct final rule would have eliminated these requirements, as the CFPB believed the same requirements and guidelines were embedded within the statute. Though this direct final rule was published on May 21, 2025, the CFPB has now withdrawn the rule after receiving significant adverse comments, leaving the notification procedures as they