States like New York, Pennsylvania stepping up to fill regulatory void left by federal agencies
By 
Aaron Nicodemus2025-05-16T14:16:00
As the Consumer Financial Protection Bureau (CFPB) steps back from its core mission of protecting American consumers, states like New York and Pennsylvania are stepping up to fill the regulatory void.
New York Attorney General Letitia James filed a federal lawsuit Wednesday against Capital One, accusing the bank of cheating its customers out of millions of dollars by keeping its savings account interest rates artificially low even as interest rates rose nationally.
The CFPB had previously sued Capital One in January regarding the exact same misconduct, but then reversed course and dropped the lawsuit in February. The key difference? A change in regulatory priorities under President Donald Trump. The CFPB sued Capital One under the final days of the administration of President Joseph Biden, then dropped the lawsuit as part of a wave of dismissals of Biden-era CFPB cases.
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