CFPB

CFPB Updates Policy For Civil Investigative Demands

The Consumer Financial Protection Bureau (CFPB) has announced changes to policies on Civil Investigative Demands (CIDs), which are investigational subpoenas issued by the CFPB.

The Consumer Financial Protection Act of 2010 authorizes the CFPB to issue CIDs when looking into potential violations of the law. As a result of the policy changes, CIDs will now provide more information about the laws that might have been violated, as well as specify the activities subject to the CFPB’s authority. When the extent of the CFPB’s authority is one of the main reasons for the investigation, staff will be able to include that issue in the CID for further transparency.

“The new policy takes into account recent court decisions about notifications of purpose, and is consistent with a 2017 report by the Bureau’s Office of Inspector General that emphasized the importance of updating Office of Enforcement policies to reflect such developments,” the CFPB explained in a press release. “The new policy is also consistent with comments the Bureau received in response to the Requests for Information it issued in 2018, seeking feedback about various aspects of its operations, including its use of CIDs in enforcement investigations.”

The Act says that each CID “shall state the nature of the conduct constituting the alleged violation, which is under investigation, and the provision of law applicable to such violation.”

Earlier this year, the CFPB announced leadership changes in a number of its departments, including the appointment of Andrew Duke as the policy associate director for external affairs. In addition, Laura Fiene will serve as west regional director. Fiene joined the CFPB at its inception in 2011, and has more than 31 years of experience in regulating financial services companies.

Marisol Garibay was also named as the acting chief communications officer, while Lora McCray is serving as the director for the Office of Minority and Women Inclusion.

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