CFPB Finalizes Rules Regarding Enforcement
June 7, 2012
June 7, 2012
Earlier this week, the Consumer Financial Protection Bureau (CFPB) posted four final rules (one interim) dealing with its procedures and practices related to enforcing consumer financial law.
The first of the rules deals with investigations. This rule describes the CFPB’s procedures for investigating whether persons have engaged in conduct that violates federal consumer financial law. It also describes the rights of persons from whom the CFPB seeks to compel information in investigations.
The CFPB also finalized a rule of practice for adjudication proceedings. This rule sets out the CFPB’s authority to conduct hearings and the rules under which those hearings will be conducted. The hearings would be to ensure or enforce compliance with federal laws and regulations.
To help the CFPB stay informed about state-level legal developments, it promulgated the state official notification rule. It describes the process through which state officials update the agency on certain legal actions they bring to enforce compliance with certain provisions of the Dodd-Frank Act and regulations the CFPB may issue. Proper notification will help ensure that the law is being enforced in a consistent manner.
Finally, the CFBP has published an interim final rule, implementing the Equal Access to Justice Act. The act provides that certain prevailing parties in administrative proceedings can recover attorney fees and expenses. The rule sets forth who can seek to recover these costs and how to do so.
These rules will become effective immediately upon publication in the Federal Register. The CFPB is accepting comments on the last rule (implementing the Equal Access to Justice Act) until the beginning of August.
Questions? Contact the Compliance Hotline: 1.800.546.4465, firstname.lastname@example.org.