June 18, 2019

June 17, 2019

Subscribe to Latest Legal News and Analysis

CFPB to Provide More Specific Notifications of Purpose in Civil Investigative Demands

On April 23, 2019, the CFPB announced that it will provide more transparency to recipients of Civil Investigative Demands (“CIDs”) on what the investigation is about. The CFPB’s press release stated that “CIDs will provide more information about the potentially applicable provisions of law that may have been violated. CIDs will also typically specify the business activities subject to the Bureau’s authority.”

This change brings the CFPB’s CID policy more in line with what is required by the Consumer Financial Protection Act of 2010, which requires CFPB CIDs to “state the nature of the conduct constituting the alleged violation which is under investigation and the provision of law applicable to such violation.”

As the CFPB acknowledged in its press release, the updated policy also addresses at least two adverse rulings the CFPB received on the adequacy of its notifications of purpose as well as an Office of Inspector General finding that the CFPB needed to improve its notifications of purpose. The CFPB also noted that the policy comes, in part, as a result of responses it received to requests for information on the CFPB’s CIDs

Copyright © by Ballard Spahr LLP

TRENDING LEGAL ANALYSIS


About this Author

Flo, Washington DC, Ballard Spahr
Associate

A client-focused litigator and enforcement attorney, with extensive experience in the financial-services, technology, and real estate industries. Theodore R. ("Teddy") Flo represents lenders, technology companies, start-ups, corporate executives, and real estate service providers in local and national litigation, arbitration, and government investigations. While focused on investigations before the CFPB, he also represents clients before the SEC, DOJ, HUD, CFTC, and state regulators.

Teddy delivers practical cost-effective results for his clients through creative thinking and...

202-661-2259