CFPB Proposes Early Notice Process For Investigation Targets

CFPB Proposes Early Notice Process For Investigation Targets The Consumer Financial Protection Bureau (CFPB) has outlined plans to provide advance notice of potential enforcement actions to individuals and firms under investigation.

The proposed Early Warning Notice process would allow the subject of an investigation to respond to any potential legal violations that CFPB enforcement staff believe have been committed before the bureau ultimately decides whether to begin legal action. Recipients of an Early Warning Notice would be allowed to submit a response in writing, within 14 days, including any relevant legal or policy arguments and facts. The process, which is not required by the Dodd-Frank Act, is modeled on similar procedures used by other federal agencies.

‘The Early Warning Notice strikes a balance between the goal of fairness to those being investigated and our mission to protect consumers,’ says Raj Date, special advisor to the Secretary of the Treasury for the CFPB. ‘This process will help us fulfill our commitment to transparency in enforcing the law.’

More information about the process can be found at the CFPB website.

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