CFPB

CFPB Sends Out RFI Over Administrative Adjudications

The Consumer Financial Protection Bureau (CFPB) wants more insight into the use of administrative adjudications and sent out a Request for Information (RFI) to get it. Administrative adjudication is a proceeding the CFPB uses in which a formal adversarial proceeding is conducted by an administrative law judge, who then issues a recommendation to the CFPB director.

In a press release announcing the Request for Information, the CFPB said the agency wants to better understand the benefits of administrative adjudications and the impact of using them. The CFPB is also seeking information about how the current process can be improved.

The RFI provides the public with an opportunity to submit feedback and offer up ways to improve the outcome for consumers and companies. This marks the second RFI from Acting Director Mick Mulvaney, who has said he will issue a series of RFIs to ensure the CFPB is fulfilling its functions to best protect consumers.

Mulvaney was appointed to his role by President Donald Trump. That appointment is currently embroiled in a lawsuit over the President’s ability to fire the director. The next RFI will focus on enforcement processes at the CFPB, noted the agency in the press release. The CFPB will be accepting comment starting Feb. 5.

The latest RFI under Mulvaney’s lead comes as the CFPB just dropped its investigation into World Acceptance Corp., which had been accused of taking advantage of low-income borrowers. According to American Banker, the Greenville, South Carolina-based company announced it received a letter from the consumer agency “indicating the investigation into the company’s marketing and lending practices has been completed. The CFPB noted it does not intend to recommend enforcement action,” the company said in a press release.

While the CFPB declined to comment on the decision to drop the investigation, consumer advocates were quick to speak up in opposition. It was pointed out that Mulvaney, who hails from South Carolina, received at least $4,500 from the company’s political action committee as a lawmaker.

——————————–

Latest Insights:

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. In the November 2019 AML/KYC Report, Zillow’s Justin Farris tells PYMNTS how the platform incorporates stringent authentication without making the onboarding and buying experiences too complex.

TRENDING RIGHT NOW