CFPB to Provide Advance Heads-Up About Enforcement Actions
November 21, 2011
The Consumer Financial Protection Bureau, in a conciliatory gesture to a wary industry, recently announced the existence of a formal Early Warning Notice process that will provide advance notice of potential enforcement actions to individuals and firms under investigation. The process is modeled on similar procedures that have been successful at other federal agencies, according to the CFPB. It starts with the bureaus Office of Enforcement explaining to individuals or firms that evidence gathered in a CFPB investigation indicates they have violated consumer financial protection laws. Recipients of an Early Warning Notice are then invited to submit a response in writing, within 14 days, including any relevant legal or policy arguments and facts. The Early Warning Notice process strikes a balance between the goal of fairness to those being investigated and our mission to protect consumers, said 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.