A group of Republican state attorneys general has chosen not to sign cooperation agreements with the Consumer Financial Protection Bureau, part of a rising Republican revolt against the agency that began in Congress.
In March, the agency's director, Richard Cordray, asked all 50 states to sign a memorandum of understanding aimed at protecting confidential information shared among states and the bureau.
Only 12 states - all but one with Democratic attorneys general - signed, according to the bureau and documents obtained in a public records request, Bloomberg News reports.
Oklahoma Attorney General Scott Pruitt said he is not signing the agreement because of legal objections to the law that created the consumer bureau, the 2010 Dodd-Frank Act.
The CFPB was created to consolidate federal financial consumer protection authority in a single agency. Since starting work in July 2011, it has set up a complaint system for consumer services, collections, proposed regulations on housing finance and is studying areas including mandatory arbitration, payday lending and overdraft protection.
A lawsuit filed in federal court in Washington in June argues the consumer bureau's structure violates the constitutional principle of separation of powers because Congress does not appropriate its budget, the president has limited ability to remove its director and courts face restrictions in reviewing its actions. State National Bank of Big Spring, Texas filed that lawsuit.
In February, the bureau announced a plan to supervise "large market" collection agencies. In July, the bureau delayed a decision on defining "large market" for the industry.
The collection industry and credit reporting industry were the first indentifed in the bureau's nonbank supervision program, which launched in January.