American Banker
4 minute read | March.14.2022
The Consumer Financial Protection Bureau in late February issued a procedural rule with little fanfare or press that nonetheless may mark a significant strategic shift in how the agency pursues enforcement — and give it more latitude in tackling what appears to be an increasingly crowded enforcement agenda.
Our internal tracking shows that almost all of the CFPB’s pending enforcement actions were originally filed in federal district court, even though the Dodd-Frank Act permits it to pursue enforcement through administrative actions. The updated rule amends the Rules of Practice for Adjudication Proceedings in a number of ways, and notably includes several amendments that could make it easier for the CFPB to litigate claims without the need to resort to filing actions in federal court in the first instance.