The latest request for information from the Consumer Financial Protection Bureau marks the third in the past month as the Trump administration continues to reduce regulation on financial services providers.
Among the powers of the CFPB is to investigate alleged violations of federal consumer financial law. It can also commence legal proceedings through either administrative adjudication proceedings or civil actions.
Though the available actions, it can seek appropriate
legal and equitable relief as permitted by law through civil money penalties, among other forms of relief.
On Monday, the bureau
published its Request for Information Regarding Bureau Enforcement Processes in the Federal Register. The request was first announced Wednesday.
The CFPB wants comments and information from stake holders about the efficiency and effectiveness of its overall federal enforcement process. It is requesting specific suggestions for enforcement process changes as well comments about parts of the process that should be kept in place.
Responses are expected from regulated entities that have previously faced enforcement actions, consumers and consumer advocates. Other groups expected to respond are researchers, regulators and attorneys for regulated entities.
Among the topics the CFPB seeks feedback about is how it communicates with the companies it is investigating. This includes the timing and frequency of investigations and how the status is communicated.
It also wants to know about the length of CFPB investigations.
The regulator wants commentary on its Notice and Opportunity to Respond and Advise process.
Another issue the regulator wants more clarity on is whether
it should give targets of enforcement actions the right to make an in-person presentation to CFPB personnel before it determines whether it will initiate legal proceedings.
Other issues it hopes to tackle are how it calculates civil penalties, consent order provisions and inter-agency coordination.
The latest request is the third such recent action by Acting CFPB Director Mick Mulvaney to loosen the reins on home lenders and other regulated entities as promised by the Trump administration.
On Jan. 31, the CFPB issued a request for information on administrative adjudications, while another request for information was made for civil investigative demands the preceding week.
Comments about the enforcement process are due by April 13 and can be submitted online at www.regulations.gov/document?D=CFPB-2018-0003-0001.
