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CFPB finalizes updates to Rules of Practice for Adjudication Procedures
On February 24, the CFPB finalized updates to the agency’s Rules of Practice for Adjudication Procedures (Rules of Practice). Under Section 1053(e) of the Consumer Financial Protection Act, the Bureau is required to establish procedures for administrative adjudications. Last February, the Bureau issued a request for comments on proposed amendments to the Rules of Practice, which are intended to provide greater procedural flexibility, provide parties earlier access to relevant information, expand deposition opportunities, and make various other changes (covered by InfoBytes here). After considering comments received, the Bureau said it will retain the proposed updates in the final procedural rule. According to the Bureau, the updated Rules of Practice expand opportunities for parties in adjudication proceedings to conduct depositions of potential witnesses to allow hearings to “proceed more efficiently and focus more on issues central to the proceeding.” The final rule also makes several amendments related to “timing and deadlines, the content of answers, the scheduling conference, bifurcation of proceedings, the process for deciding dispositive motions, and requirements for issue exhaustion, as well as other technical changes.” The final rule is effective upon publication in the Federal Register. The Bureau noted in its announcement that while it “still plans to bring the vast majority of its matters in district court,” it will continue to conduct administrative adjudications in certain circumstances.
CFPB revises Rules of Practice for Adjudication Proceedings
On February 22, the CFPB published a procedural rule and request for public comment in the Federal Register, to update its Rules of Practice for Adjudication Proceedings. Under Section 1053(e) of the Consumer Financial Protection Act, the Bureau has authority to conduct administrative proceedings. The CFPB indicated that the amendments would provide greater procedural flexibility, providing parties earlier access to relevant information, expanding deposition opportunities, and making various changes related to “timing and deadlines, the content of answers, the scheduling conference, bifurcation of proceedings, the process for deciding dispositive motions, and requirements for issue exhaustion, as well as other technical changes.” The proposed amendments also propose to simplify and clarify the computation of deadlines and would indicate that motions for extension of time are “generally disfavored” (a list of factors to be considered, however, would be retained). Comments must be received by April 8.