The Consumer Financial Protection Bureau’s ability to make investigative demands on financial companies is a vital law enforcement tool that shouldn’t be tampered with, a group of 16 Democratic state attorneys general said April 26.
The CFPB under acting Director Mick Mulvaney in January asked for public comments on the bureau’s civil investigative demand (CID) process as part of a broad review of its policies and procedures. Consumer advocates fear that the bureau’s review is part of an effort to weaken the CFPB’s enforcement of financial protection and anti-discrimination laws.
The CFPB’s investigative demand process has come under fire from companies that say the requests for documents and other information are overly broad and difficult to fulfill. But the 16 attorneys general said in their letter that the CFPB’s procedures mirror those of the Federal Trade Commission and didn’t draw much scrutiny when the CFPB first proposed them in 2011 and finalized them in a year later.
The bureau has also shown a willingness to trim information requests when working with companies, and courts have the power to limit CIDs, the letter said.
“As our states’ chief law enforcement officers, we have witnessed the bureau use its investigatory subpoena authority in a manner that minimizes burdens on recipients while still allowing the bureau to protect consumers and promote fair and transparent financial products and services,” the letter said.
The CFPB’s investigative demand letters have been vital in parallel investigations that the CFPB and the states conducted against JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co., and other major companies, the attorneys general said.
The attorneys general from California, Delaware, Hawaii, Illinois, Iowa, Maryland, Minnesota, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington signed on to the letter.
To contact the reporter on this story: Evan Weinberger at firstname.lastname@example.org
To contact the editor responsible for this story: Michael Ferullo at email@example.com
Copyright © 2018 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)