REFinBlog

Editor: David Reiss
Brooklyn Law School

February 27, 2018

Reducing Enforcement at The CFPB

By David Reiss

Mick Mulvaney’s Consumer Financial Protection Bureau has released a Request for Information Regarding Bureau Enforcement Activities (available on the upper right corner of this page), its third in a series of RFIs that seek to dramatically restrict the Bureau’s activities. The Bureau seeks

feedback on all aspects of its enforcement processes, including but not limited to:

1. Communication between the Bureau and the subjects of investigations, including the timing and frequency of those communications, and information provided by the Bureau on the status of its investigation;

2. The length of Bureau investigations;

3. The Bureau’s Notice and Opportunity to Respond and Advise process, including:

a. CFPB Bulletin 2011–04, Notice and Opportunity to Respond and Advise (NORA), issued November 7, 2011 (updated January 18, 2012) and available at http://files.consumerfinance.gov/f/2012/01/
Bulletin10.pdf, including whether invocation of the NORA process should be mandatory rather than discretionary;and

b. The information contained in the letters that the Bureau may send to subjects of potential enforcement actions pursuant to the NORA process, as exemplified by the sample letter available at http://www.consumerfinance.gov/wp-content/uploads/2012/01/NORA-Letter1.pdf;

4. Whether the Bureau should afford subjects of potential enforcement actions the right to make an in-person presentation to Bureau personnel prior to the Bureau determining whether it should initiate legal proceedings;

5. The calculation of civil money penalties, consistent with the penalty amounts and mitigating factors set out in 12 U.S.C. 5565(c), including whether the Bureau should adopt a civil money penalty matrix, and, if it does adopt such a matrix, what that matrix should include;

6. The standard provisions in Bureau consent orders, including conduct, compliance, monetary relief, and administrative provisions; and

7. The manner and extent to which the Bureau can and should coordinate its enforcement activity with other Federal and/or State agencies that may  have overlapping jurisdiction. (83 F.R. 6000) (Feb. 12, 2018)

The not-so-subtext of this RFI is that Mulvaney is seeking to hamstring the Bureau’s enforcement authority which Republicans have found to be too zealous since the Bureau was first started up.

Comments are due April 13, 2018, so get crackin’.

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