Ex-CFPB official tapped to lead NJ consumer affairs unit

State-level oversight of consumer lending is getting much tougher. New Jersey recently appointed Christopher Peterson, a former senior advisor at the Consumer Financial Protection Bureau (CFPB), to lead its Division of Consumer Affairs. This follows a similar move in California, where former CFPB Director Rohit Chopra was tapped to lead a new state consumer agency. For retailers, this signals a shift from federal-led enforcement to aggressive state-level policing of financing products. Peterson is known for his hardline stance against high-interest lending and predatory practices. His appointment suggests that New Jersey will prioritize investigations into Buy Now, Pay Later (BNPL) transparency, lease-to-own disclosures, and interest rate caps. If you offer third-party financing to your customers, expect more frequent audits and stricter compliance requirements at the state level. These regulators often look at 'hidden' fees and whether terms are clearly explained to the consumer at the point of sale. Businesses should take this as a cue to review their financing partnerships. Ensure your lenders are fully compliant with both federal and emerging state rules. As more states hire 'CFPB veterans,' the legal standard for what counts as fair lending is rising. Don't wait for a state subpoena to check if your financing disclosures meet the mark.

Source: Banking Dive

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