Rule2022-12727
Consumer Financial Protection Circular 2022-01: System of Consumer Financial Protection Circulars to Agencies Enforcing Federal Consumer Financial Law
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 14, 2022
Issuing agencies
Consumer Financial Protection Bureau
Abstract
The Consumer Financial Protection Bureau (Bureau or CFPB) has issued Consumer Financial Protection Circular 2022-01, titled, "System of Consumer Financial Protection Circulars to Agencies Enforcing Federal Consumer Financial Law." In this circular, the Bureau outlines its efforts to promote consistency among enforcers and fair competition in the market by launching a new system to provide guidance to other agencies with consumer financial protection responsibilities on how the CFPB intends to enforce Federal consumer financial law.
Full Text
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<title>Federal Register, Volume 87 Issue 114 (Tuesday, June 14, 2022)</title>
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[Federal Register Volume 87, Number 114 (Tuesday, June 14, 2022)]
[Rules and Regulations]
[Pages 35868-35869]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-12727]
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BUREAU OF CONSUMER FINANCIAL PROTECTION
12 CFR Chapter X
Consumer Financial Protection Circular 2022-01: System of
Consumer Financial Protection Circulars to Agencies Enforcing Federal
Consumer Financial Law
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Consumer financial protection circular.
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SUMMARY: The Consumer Financial Protection Bureau (Bureau or CFPB) has
issued Consumer Financial Protection Circular 2022-01, titled, ``System
of Consumer Financial Protection Circulars to Agencies Enforcing
Federal Consumer Financial Law.'' In this circular, the Bureau outlines
its efforts to promote consistency among enforcers and fair competition
in the market by launching a new system to provide guidance to other
agencies with consumer financial protection responsibilities on how the
CFPB intends to enforce Federal consumer financial law.
DATES: The Bureau released this circular on its website on May 16,
2022.
ADDRESSES: Enforcers, and the broader public, can provide feedback and
comments to <a href="/cdn-cgi/l/email-protection#b7f4dec5d4c2dbd6c5c4f7d4d1c7d599d0d8c1"><span class="__cf_email__" data-cfemail="95d6fce7f6e0f9f4e7e6d5f6f3e5f7bbf2fae3">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: Brian Shearer, Senior Advisor, Office
of the Director; Brad Lipton, Senior Counsel, Legal Division, at (202)
435-7700. If you require this document in an alternative electronic
format, please contact <a href="/cdn-cgi/l/email-protection#1d5e5b4d5f425c7e7e786e6e747f74717469645d7e7b6d7f337a726b"><span class="__cf_email__" data-cfemail="0f4c495f4d504e6c6c6a7c7c666d6663667b764f6c697f6d21686079">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: The CFPB will issue Consumer Financial
Protection Circulars to the broad set of government agencies
responsible for enforcing Federal consumer financial law.
The CFPB is the principal Federal regulator responsible for
administering the Federal consumer financial laws, see 12 U.S.C. 5511,
including the Consumer Financial Protection Act's prohibition on
unfair, deceptive, and abusive acts or practices,\1\ and eighteen other
``enumerated consumer laws.'' \2\ However, the CFPB is not the only
enforcer of these laws; enforcement responsibility is spread among a
large set of State and Federal government agencies. This includes, most
notably, State attorneys general and State regulators \3\ and
prudential regulators such as the Federal Deposit Insurance
Corporation, the Office of the Comptroller of the Currency, the Board
of Governors of the Federal Reserve System, and the National Credit
Union Administration.\4\ Some Federal consumer financial laws are also
enforceable by other Federal agencies, including the Department of
Justice, the Federal Trade Commission, the Farm Credit Administration,
the Department of Transportation, and the Department of Agriculture. In
addition, some of these laws provide for private enforcement.
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\1\ 12 U.S.C. 5536(a)(1)(B).
\2\ 12 U.S.C. 5481(12).
\3\ 12 U.S.C. 5552.
\4\ See, e.g., 12 U.S.C. 5516(d), 5581(c)(2).
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Given the broad variety of agencies responsible for enforcing
Federal consumer financial law, there is a risk that companies might
encounter inconsistent enforcement strategies and approaches. One of
the CFPB's five statutory objectives is to ensure Federal consumer
financial law is enforced consistently regardless of the status of a
person as a chartered bank or nonbank.\5\ Many entities are subject to
the jurisdiction of multiple agencies, and to maintain certainty of
expectations for those companies with multiple regulators, it is
important for State and Federal government agencies to consistently
enforce the laws that the CFPB administers. Consistency is also
imperative to creating a level playing field between companies that
compete in the same market but are subject to the jurisdiction of
different enforcers and Consumer Financial Protection Circulars will
provide transparency to partner agencies regarding the CFPB's intended
approach when cooperating in enforcement actions.
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\5\ 12 U.S.C. 5511(b)(4).
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As described more fully below, Consumer Financial Protection
Circulars will be policy statements under the Administrative Procedure
Act and will be released publicly to increase transparency for the
benefit of the public and regulated entities. Consumer Financial
Protection Circulars will provide background information about
applicable law, articulate considerations relevant to the CFPB's
exercise of its authorities and advise other parties with authority to
enforce Federal consumer financial law. The Director of the CFPB will
authorize issuance of each Consumer Financial Protection Circular, and
the CFPB will publish them on its website and in the Federal Register.
The CFPB is beginning to identify a number of issues that would
benefit from clear and consistent enforcement, and the CFPB intends to
issue new Consumer Financial Protection Circulars to advance these
goals. The
[[Page 35869]]
CFPB strongly encourages enforcers of Federal consumer financial law to
contact the CFPB with suggestions for new Consumer Financial Protection
Circulars. The CFPB is also interested in receiving feedback on any
Consumer Financial Protection Circulars it issues. Enforcers, and the
broader public, can also provide feedback and comments to
<a href="/cdn-cgi/l/email-protection#e2a18b9081978e839091a281849280cc858d94"><span class="__cf_email__" data-cfemail="cd8ea4bfaeb8a1acbfbe8daeabbdafe3aaa2bb">[email protected]</span></a>.
About Consumer Financial Protection Circulars
Consumer Financial Protection Circulars are issued to all parties
with authority to enforce Federal consumer financial law. The CFPB is
the principal Federal regulator responsible for administering Federal
consumer financial law, see 12 U.S.C. 5511, including the Consumer
Financial Protection Act's prohibition on unfair, deceptive, and
abusive acts or practices, 12 U.S.C. 5536(a)(1)(B), and 18 other
``enumerated consumer laws,'' 12 U.S.C. 5481(12). However, these laws
are also enforced by State attorneys general and State regulators, 12
U.S.C. 5552, and prudential regulators including the Federal Deposit
Insurance Corporation, the Office of the Comptroller of the Currency,
the Board of Governors of the Federal Reserve System, and the National
Credit Union Administration. See, e.g., 12 U.S.C. 5516(d), 5581(c)(2)
(exclusive enforcement authority for banks and credit unions with $10
billion or less in assets). Some Federal consumer financial laws are
also enforceable by other Federal agencies, including the Department of
Justice and the Federal Trade Commission, the Farm Credit
Administration, the Department of Transportation, and the Department of
Agriculture. In addition, some of these laws provide for private
enforcement.
Consumer Financial Protection Circulars are intended to promote
consistency in approach across the various enforcement agencies and
parties, pursuant to the CFPB's statutory objective to ensure Federal
consumer financial law is enforced consistently. 12 U.S.C. 5511(b)(4).
Consumer Financial Protection Circulars are also intended to
provide transparency to partner agencies regarding the CFPB's intended
approach when cooperating in enforcement actions. See, e.g., 12 U.S.C.
5552(b) (consultation with CFPB by State attorneys general and
regulators); 12 U.S.C. 5562(a) (joint investigatory work between CFPB
and other agencies).
Consumer Financial Protection Circulars are general statements of
policy under the Administrative Procedure Act. 5 U.S.C. 553(b). They
provide background information about applicable law, articulate
considerations relevant to the Bureau's exercise of its authorities,
and, in the interest of maintaining consistency, advise other parties
with authority to enforce Federal consumer financial law. They do not
restrict the Bureau's exercise of its authorities, impose any legal
requirements on external parties, or create or confer any rights on
external parties that could be enforceable in any administrative or
civil proceeding. The CFPB Director is instructing CFPB staff as
described herein, and the CFPB will then make final decisions on
individual matters based on an assessment of the factual record,
applicable law, and factors relevant to prosecutorial discretion.
Rohit Chopra,
Director, Consumer Financial Protection Bureau.
[FR Doc. 2022-12727 Filed 6-13-22; 8:45 am]
BILLING CODE 4810-AM-P
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