The Consumer Financial Protection Bureau (CFPB) announced last week changes to its policies related to Civil Investigative Demands (CIDs). These changes are designed to ensure more information is provided by the CFPB at the onset of the investigation about the potentially wrongful conduct.
Specifically, it will “will provide more information about the potentially applicable provisions of law that may have been violated.” CIDs will also specify the business activities subject to the CFPB’s authority.
According to the bureau, the new policy takes into account “recent court decisions about notifications of purpose and is consistent with a 2017 report by the Bureau’s Office of Inspector General emphasized the importance of updating Office of Enforcement policies to reflect such developments.
The CFPB also incorporated feedback received in response to its 2018 Request for Information (RFI) on CIDs, which was issued as part of Acting Director Mulvaney’s call for evidence on the Bureau’s policies and procedures.
The CFPB is authorized by statute to issue investigational subpoenas known as CIDs when looking into potential violations of law. By law, each CID “shall state the nature of the conduct constituting the alleged violation which is under investigation and the provision of law applicable to such violation.”
CIDs issued by the Bureau set out this information in a section known as the “notification of purpose.”