Financial services firms under the supervision of the Consumer Financial Protection Bureau will be pleased to hear about a new policy change, announced April 23, in which the CFPB said it will start to provide more information about potentially wrongful conduct during investigations, effectively giving banks and lenders a better understanding of what wrongful conduct prompted the agency’s scrutiny.
Consistent with the updated policy, Civil Investigative Demands (CIDs) will provide more information about the potentially applicable provisions of law that may have been violated. CIDs will also typically specify the business activities subject to the CFPB’s authority. In investigations where determining the extent of the CFPB’s authority over the relevant activity is one of the significant purposes of the investigation, staff may specifically include that issue in the CID in the interests of further transparency.
