CFPB Issues TILA Preemption Determination for State Business Lending Disclosures

Recently, the CFPB announced that it determined that certain state disclosure laws covering business lending in California, New York, Utah, and Virginia were not preempted by TILA.  The CFPB clarified this position, stating that there was no conflict between TILA and the state laws, because the state disclosure laws merely served to extend disclosure safeguards to businesses and entrepreneurs seeking commercial financing and commercial financing transactions are not covered by TILA.  The CFPB reiterated that states have extensive authority to create their own protections both within and outside the scope of TILA and that TILA only preempts state laws under conflict preemption.

Previously, we covered the CFPB’s notice of intent to make TILA preemption determinations on state business lending disclosure laws.