The Consumer Financial Protection Bureau this week announced its intent to make a preemption determination regarding whether the Truth in Lending Act preempts a New York State commercial financing law with respect to certain provisions. The bureau’s preliminary conclusion is that the law is not preempted by TILA.
The New York state law in question requires financial disclosures before consummation of covered transactions, although it applies to “commercial financing” instead of consumer credit. Specifically, it requires providers to issue disclosures when “extending a specific offer” for various types of commercial financing.
The CFPB said it is also considering whether to make a preemption determination to similar state laws in California, Utah and Virginia. Public comments are invited through Jan. 20.