The Consumer Financial Protection Bureau announced it will review and seek public comment regarding nearly all facets of the regulatory agency starting with the civil investigative demands (CIDs) process.
CFPB Acting Director Mick Mulvaney is issuing requests for information on enforcement, supervision, rulemaking, market monitoring, and education activities at the agency, according to a press release Wednesday.
Mulvaney — who has previously questioned the CFPB’s existence — is initiating the process to “critically examine [the CFPB’s] policies and practices,” he said in the release.
While these changes are likely to take years to implement, many auto lenders are seeking a narrower focus to the parameters of CIDs, John Redding, partner at Buckley Sandler LLP, told Auto Finance News.
“Too often, a CID can appear to be an overly broad fishing expedition without sufficient focus, coupled with an unwillingness to modify deadlines in any reasonable manner, regardless of the circumstances,” he said. “We certainly anticipate that any broader process changes will benefit the auto finance industry.”
In September 2017, the Office of Inspector General found that the CFPB “generally complies” with CID procedures and issued a few recommendations that are being implemented at the agency now.
“While change necessarily creates some level of uncertainty, the industry has been operating under the supervision of the CFPB for some time now,” Redding said. “Participants we work with are continuing to maintain and enhance their compliance management systems with that in mind.”
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