February 07, 2018

CFPB asks for feedback on enforcement processes

The CFPB on Wednesday issued a request for information to help the bureau assess the efficiency and effectiveness of its enforcement processes. This RFI is due to be published in the Federal Register Monday and will be open for comments for 60 days.

CFPB Acting Director Mick Mulvaney recently announced that the bureau will issue a series of requests to obtain public feedback on how to improve its functions and outcomes for consumers and the entities it regulates. Two other RFIs have been released so far on civil investigative demands (CIDs) and administrative adjudications; the next RFI set to be issued next week will be on supervisory processes.

The bureau, in its new request, said it would like feedback "on how best to achieve meaningful burden reduction" or other improvements to its enforcement of federal consumer financial law, while still meeting statutory objectives and being fair and transparent in its actions.

It is asking for public comment on all aspects of its enforcement processes, including:

  • communication between the bureau and the subjects of its investigations;
  • the length of investigations;
  • the bureau's notice and opportunity to respond and advise process;
  • allowing subjects to present to bureau staff before initiating legal proceedings;
  • the calculation of civil money penalties;
  • the standard provisions included in consent orders; and
  • coordination of enforcement activity with other federal and state agencies that have overlapping jurisdiction.

NAFCU will continue to seek member feedback on these RFIs through Regulatory Alerts in order to provide substantive feedback to the CFPB to help it reduce credit unions' regulatory burden.