January 31, 2018

CFPB seeks input on administrative adjudications; NAFCU asks for feedback on enforcement

The CFPB yesterday issued a request for information (RFI) about administrative adjudications. This RFI is the second in a series of requests for the bureau to obtain public feedback on how to improve its functions and outcomes for consumers and the entities it regulates.

With this RFI, the CFPB said it would like to better understand the benefits and impacts of administrative adjudications and how the existing process could be improved. The RFI is expected to be published in the Federal Register Feb. 5 and will be open for public comment for 60 days once published.

The CFPB's first RFI in this series is on the bureau's civil investigative demands (CIDs) processes and if any changes to the processes are appropriate. NAFCU, in a Regulatory Alert sent to members yesterday, is asking credit unions for feedback on the request.

CIDs are issued by the CFPB when the bureau suspects a financial institution is violating consumer protection laws. The CFPB specifically wants information on how its processes related to CIDs can be updated, streamlined or revised so the bureau can better meet its statutory and regulatory objectives, while also minimizing existing burdens.

NAFCU's Regulatory Alert asks about credit unions' knowledge of the CID process and the rights credit unions have as a recipient of the request, how institutions prepare for possible CID requests and what improvements could be made to the CID process.

Member credit unions can submit comments to NAFCU on the CID RFI until March 12; comments are due to the CFPB March 27.

NAFCU will issue a Regulatory Alert on the administrative adjudications RFI once it is published in the Federal Register.