Still, even with the stepped-up enforcement, there are concerns that the state AGs can’t go after the really big financial companies such as Wells Fargo or Bank of America. States tend to go after smaller, state-chartered banks or non-banks like payday lenders and mortgage brokers. They also have less of a budget than the CFPB and thus may not be as effective as the federal government in holding the big firms accountable. “There really is no substitute for the CFPB, as we saw in the run-up to the last recession,” said Lisa Stifler, deputy director of state policy for the Center for Responsible Lending. “We need states to look out for the best interests of state residents, but we also need the CFPB to vigorously enforce consumer protection laws.”
