The regulatory landscape for consumer finance is undergoing a seismic shift. As the CFPB’s power wanes, state attorneys general stepped up dramatically in 2025 and even more aggressive state-level action is expected in 2026. In this Law360 article, State AG Enforcement During CFPB Gap Predicts 2026 Trends, Cozen O’Connor’s Keturah Taylor, Brett Watson, and Maryam Arshad examine how Democratic state AGs are taking up the CFPB’s mantle with lawsuits against major financial institutions and payment platforms; Republican AGs are cracking down on DEI and ESG practices within the industry; and AGs on both sides of the aisle are targeting housing affordability. Businesses must evolve their compliance and regulatory response strategies to address this fragmented regulatory environment.
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