Newsroom

June 07, 2012

CFPB sets rules on investigations

June 7, 2012 – The Consumer Financial Protection Bureau on Wednesday published three final rules addressing the bureau's procedures and practices for enforcement of federal financial consumer laws.

The final rules deal with the bureau's investigative and adjudicative processes and interactions with state law enforcement authorities. Interim rules were published last July. The final rules are effective as of their publication in the Federal Register. Here are brief descriptions:

  • Investigations: This rule, which affects only credit unions with more than $10 billion in assets (the three largest), describes the CFPB's procedures for investigating whether persons have engaged in conduct that violates federal consumer financial law. Similar to rules used by other regulators, it describes the bureau's authority to conduct investigations, procedures for issuing civil investigative demands and the rights of those from whom the CFPB seeks to compel information.
  • Adjudication proceedings: The rule explains that the CFPB can conduct administrative adjudications, or hearings, to ensure or enforce compliance with federal laws and regulations. The bureau drew on the experiences of other regulators and reviewed the public comments in setting the final provisions. The CFPB says the final rule should ensure a streamlined adjudication process that protects parties' rights to fair and impartial proceedings.
  • State official notification rule: This rule is to help the bureau stay informed about state-level legal developments relating to the Dodd-Frank Act, the goal being to help the bureau ensure the act is enforced in a consistent manner.

The CFPB also issued an interim final rule to implement the Equal Access to Justice Act. The act provides that certain prevailing parties in administrative proceedings can recover attorney fees and expenses. Comments will be due 60 days after the interim rule's publication in the Federal Register.