Main Content

TCH Responds to CFPB Request for Information on CIDs

The Clearing House (TCH) filed a comment letter responding to the CFPB’s January 2018 request for comment and information to assist the CFPB in assessing potential changes that can be implemented to its Civil Investigative Demand (CID) processes. The letter contains a range of specific recommended reforms to the rules and practices of the CFPB’s CID process that are intended to further important policy aims, such as due process, transparency, and efficiency, without inhibiting the CFPB’s ability to use CIDs to collect information.  Specific recommended reforms include that: (i) the CFPB should amend its procedures for issuing CIDs to enhance CFPB Enforcement’s coordination with Supervision and to increase oversight of an investigation’s scope and objectives, particularly where an investigation is based on the CFPB’s UDAAP authority, (ii) the CFPB should institute additional safeguards to help ensure that the burdens imposed by the nature of the scope of requests included in CIDs are appropriately tailored and proportional to the need for the requested information, (iii) the CFPB should implement a confidential, fair, and flexible approach to considering requests to set aside or modify a CID—both within and outside the formal petition process, and (iv) the CFPB should implement formal policies barring requests for privileged materials through a CID and restricting the use of privileged materials in Enforcement matters.