BCFP Should Recalibrate Civil Investigative Demand Process to Enhance Transparency, Efficiency

April 27, 2018

Washington – The Consumer Bankers Association (CBA) and Financial Services Roundtable (FSR) sent a joint letter calling for the Bureau of Consumer Financial Protection (BCFP) to reform its civil investigative demand (CID) processes to create a fairer and less burdensome process.

“At times, the Bureau has wielded its considerable investigation powers without first considering alternative and more tailored approaches and without sufficient regard for the impact on regulated entities, the long-term impact on the consumer financial marketplace, or the opportunity costs of the Bureau's use of enforcement resources,” the financial trades wrote. “We believe that each of these factors should be weighed in the Bureau's strategy.”

The letter, which focuses on needed CID refinements, outlines several recommendations that will maintain the Bureau’s ability to vigilantly provide consumer protection oversight and use its enforcement powers in a manner that is fair to all parties.

“The Bureau has used civil investigative demands in a manner that has been opaque, burdensome, and often unfair to providers of financial services. By implementing our suggested reforms, institutions will know the ‘rules of the road’ and will be confident the Bureau stands ready to supervise, interpret, and enforce those rules consistently across the industry,” said Rich Foster, FSR’s SVP & Senior Counsel for Regulatory and Legal Affairs.

“These commonsense reforms will ensure rules and regulations are enforced appropriately for not just supervised institutions but also consumers,” said Steve Zeisel, CBA Executive Vice President and General Counsel. “Banks place a premium on serving customers but the issuance of CIDs and so-called ‘regulation by enforcement’ muddies the waters by moving the goal posts on financial regulations.”

To read the full letter, click here.

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About the Consumer Bankers Association

The Consumer Bankers Association represents America’s retail banks above $10 billion in assets. We advance legislation and promote policies geared toward creating a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.6 million jobs in America, extend roughly $3 trillion in consumer loans, and provide $270 billion in small business loans. Follow us on Twitter @consumerbankers.