Proposed Rule2025-08347
Procedures for Supervisory Designation Proceedings
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
May 14, 2025
Issuing agencies
Consumer Financial Protection Bureau
Abstract
The Consumer Financial Protection Bureau (CFPB or Bureau) is proposing to rescind the amendments it adopted on April 29, 2022, November 21, 2022, and April 23, 2024, to the Procedures for Supervisory Designation Proceedings.
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<title>Federal Register, Volume 90 Issue 92 (Wednesday, May 14, 2025)</title>
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[Federal Register Volume 90, Number 92 (Wednesday, May 14, 2025)]
[Proposed Rules]
[Pages 20401-20406]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-08347]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 90, No. 92 / Wednesday, May 14, 2025 /
Proposed Rules
[[Page 20401]]
CONSUMER FINANCIAL PROTECTION BUREAU
12 CFR Part 1091
[Docket No. CFPB-2025-0013]
RIN 3170-AB34
Procedures for Supervisory Designation Proceedings
AGENCY: Consumer Financial Protection Bureau.
ACTION: Proposed rule; request for comment.
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SUMMARY: The Consumer Financial Protection Bureau (CFPB or Bureau) is
proposing to rescind the amendments it adopted on April 29, 2022,
November 21, 2022, and April 23, 2024, to the Procedures for
Supervisory Designation Proceedings.
DATES: Comments must be received on or before June 13, 2025.
ADDRESSES: You may submit responsive information and other comments,
identified by Docket No. CFPB-2025-0013, by any of the following
methods:
<bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Follow the instructions for submitting comments. A brief summary of
this document will be available at <a href="https://www.regulations.gov/docket/CFPB-2025-0013">https://www.regulations.gov/docket/CFPB-2025-0013</a>.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#a0929092958deef0f2ed8df3d5d0c5d2d6c9d3cfd2d98de4c5d3c9c7cec1d4c9cfcee0c3c6d0c28ec7cfd6"><span class="__cf_email__" data-cfemail="efdddfdddac2a1bfbda2c2bc9a9f8a9d99869c809d96c2ab8a9c8688818e9b868081af8c899f8dc1888099">[email protected]</span></a>. Include
Docket No. CFPB-2025-0013 in the subject line of the message.
<bullet> Mail/Hand Delivery/Courier: Comment Intake--Procedures for
Supervisory Designation Proceedings, c/o Legal Division Docket Manager,
Consumer Financial Protection Bureau, 1700 G Street NW, Washington, DC
20552.
Instructions: The Bureau encourages the early submission of
comments. All submissions should include the agency name and docket
number. Because paper mail is subject to delay, commenters are
encouraged to submit comments electronically. In general, all comments
received will be posted without change to <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
All submissions, including attachments and other supporting materials,
will become part of the public record and subject to public disclosure.
Proprietary information or sensitive personal information, such as
account numbers or Social Security numbers, or names of other
individuals, should not be included. Submissions will not be edited to
remove any identifying or contact information.
FOR FURTHER INFORMATION CONTACT: George Karithanom, Regulatory
Implementation and Guidance Program Analyst, Office of Regulations, at
202-435-7700. If you require this document in an alternative electronic
format, please contact <a href="/cdn-cgi/l/email-protection#14575244564b5577777167677d767d787d606d54777264763a737b62"><span class="__cf_email__" data-cfemail="bcfffaecfee3fddfdfd9cfcfd5ded5d0d5c8c5fcdfdaccde92dbd3ca">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: The Bureau is proposing to rescind the
amendments to the Procedures for Supervisory Designation Proceedings
that it adopted on April 29, 2022, at 87 FR 25397; on November 21,
2022, at 87 FR 70703; and on April 23, 2024, at 89 FR 30259. These
amendments were codified in 12 CFR 1091. Collectively, the rules
proposed for rescission provided for public release of final decisions
and orders by the Director and made other changes to the CFPB's
procedures for designating nonbank covered persons for supervision. We
propose to rescind the rules in full and seek comment on that proposal.
The Bureau has particular concerns about the manner in which the
April 2022, November 2022, and April 2024 amendments provided for
public release of decisions and orders. If an entity consents to
supervisory designation, under the procedures as amended there is no
decision or order issued by the Director that is eligible for public
release. However, if it exercises its statutory right to contest
designation, that choice may ultimately result in a public decision and
order asserting that the entity ``is engaging, or has engaged, in
conduct that poses risks to consumers.'' 12 U.S.C. 5514(a)(1)(C).
Because businesses are concerned about their public reputations, this
procedural disparity may put inappropriate pressure on entities to
consent to designation, even when they have good arguments that
designation is unwarranted. The Bureau also requests comment on the
impact of public release on supervised entities and the supervisory
process. With respect to other changes made by the amendments, the
Bureau's preliminary view subject to considering comments is that they
were largely unnecessary.
List of Subjects in 12 CFR Part 1091
Administrative practice and procedure, Consumer protection, Credit,
Trade practices.
Authority and Issuance
0
As discussed above, the Bureau proposes to revise 12 CFR part 1091 to
read as follows:
PART 1091--PROCEDURES FOR SUPERVISORY DESIGNATION PROCEEDINGS
Subpart A--General
Sec.
1091.100 Scope and purpose.
1091.101 Definitions.
Subpart B--Determination and Voluntary Consent Procedures
1091.102 Issuance of Notice of Reasonable Cause.
1091.103 Contents of Notice.
1091.104 Service of Notice.
1091.105 Response.
1091.106 Supplemental oral response.
1091.107 Manner of filing and serving papers.
1091.108 Recommended determination.
1091.109 Determination by the Director.
1091.110 Voluntary consent to Bureau's authority.
1091.111 Notice and response included in adjudication proceeding
otherwise brought by the Bureau.
1091.112 No limitation on relief sought in civil action or
administrative adjudication.
Subpart C--Post-Determination Procedures
1091.113 Petition for termination of order.
Subpart D--Time Limits and Deadlines
1091.114 Construction of time limits.
1091.115 Change of time limits and confidentiality of proceedings.
Authority: 12 U.S.C. 5512(b)(1), 5514(a)(1)(C), 5514(b)(7).
Subpart A--General
Sec. 1091.100 Scope and purpose.
This part sets forth procedures to implement section 1024(a)(1)(C)
of the Dodd-Frank Wall Street Reform and Consumer Protection Act of
2010, Public Law 111-203 (12 U.S.C. 5514(a)(1)(C)) (Dodd-Frank Act),
and
[[Page 20402]]
establishes rules to facilitate the Bureau's supervisory authority over
certain nonbank covered persons pursuant to section 1024(b)(7) of the
Dodd-Frank Act (12 U.S.C. 5514(b)(7)).
Sec. 1091.101 Definitions.
For the purposes of this part, the following definitions apply:
Assistant Director means an Assistant Director for Supervision. If
there is no Assistant Director, the Associate Director may designate an
alternative Bureau employee to perform the functions of an Assistant
Director under this part.
Associate Director means the Associate Director of the Bureau's
Division of Supervision, Enforcement, and Fair Lending, or his or her
designee. If there is no Associate Director, the Director may designate
an alternative Bureau employee to perform the functions of the
Associate Director under this part.
Bureau means the Consumer Financial Protection Bureau.
Consumer means an individual or an agent, trustee, or
representative acting on behalf of an individual.
Consumer financial product or service means any financial product
or service, as defined in 12 U.S.C. 5481(15), that is described in one
or more categories under:
(1) 12 U.S.C. 5481(15) and is offered or provided for use by
consumers primarily for personal, family, or household purposes; or
(2) Clause (i), (iii), (ix), or (x) of 12 U.S.C. 5481(15)(A) and is
delivered, offered, or provided in connection with a consumer financial
product or service referred to in paragraph (1) of this definition.
Decisional employee means any employee of the Bureau who has not
engaged in:
(1) Assisting the initiating official in either determining whether
to issue a Notice of Reasonable Cause, or presenting the initiating
official's position in support of a Notice of Reasonable Cause, either
in writing or in a supplemental oral response, to the Associate
Director; or
(2) Assisting the Associate Director in the preparation of a
recommended determination.
Director means the Director of the Bureau or his or her designee.
If there is no Director, the term shall mean a person authorized to
perform the functions of the Director under this part, or his or her
designee.
Executive Secretary means the Executive Secretary of the Bureau.
Initiating official means an Assistant Director or a Bureau
employee designated to act as an ``initiating official'' by an
Assistant Director. If there is not an Assistant Director, the
Associate Director may designate a Bureau employee to perform the
functions of an initiating official under this part.
Nonbank covered person means, except for persons described in 12
U.S.C. 5515(a) and 5516(a):
(1) Any person that engages in offering or providing a consumer
financial product or service; and
(2) Any affiliate of a person described in paragraph (1) of this
definition if such affiliate acts as a service provider to such person.
Notice of Reasonable Cause and Notice mean a Notice issued under
Sec. 1091.102.
Person means an individual, partnership, company, corporation,
association (incorporated or unincorporated), trust, estate,
cooperative organization, or other entity.
Respondent means a person who has been issued a Notice of
Reasonable Cause under Sec. 1091.102.
Response means the response to a Notice of Reasonable Cause filed
by a respondent with the Associate Director under Sec. 1091.105.
Subpart B--Determination and Voluntary Consent Procedures
Sec. 1091.102 Issuance of Notice of Reasonable Cause.
(a) An initiating official is authorized to issue a Notice of
Reasonable Cause to a person stating that the Bureau may have
reasonable cause to determine that the respondent is a nonbank covered
person that is engaging, or has engaged, in conduct that poses risks to
consumers with regard to the offering or provision of consumer
financial products or services.
(b) A Notice of Reasonable Cause shall be based on:
(1) Complaints collected through the system under 12 U.S.C.
5493(b)(3); or
(2) Information from other sources.
(c) Except as provided in Sec. 1091.111, a Notice of Reasonable
Cause shall contain the information set forth in Sec. 1091.103, and be
served on respondent as described in Sec. 1091.104.
Sec. 1091.103 Contents of Notice.
(a) A Notice of Reasonable Cause shall contain the following:
(1) A description of the basis for the assertion that the Bureau
may have reasonable cause to determine that a respondent is a nonbank
covered person that is engaging, or has engaged, in conduct that poses
risks to consumers with regard to the offering or provision of consumer
financial products or services, including a summary of the documents,
records, or other items relied on by the initiating official to issue a
Notice. Such summary will be consistent with the protection of
sensitive information, including compliance with Federal privacy law
and whistleblower protections; and
(2) A statement informing a respondent that:
(i) A respondent may file with the Associate Director a written
response to a Notice of Reasonable Cause no later than 30 days after
the Notice is served on the respondent;
(ii) The written response shall include the elements addressed in
Sec. 1091.105(b);
(iii) A respondent may request in its written response to a Notice
an opportunity to present an in-person or telephonic supplemental oral
response to the Associate Director as set forth in Sec. 1091.106;
(iv) A failure timely to file a response to a Notice shall
constitute a waiver of a respondent's right to respond, and may result
in a default determination by the Director, based on the Notice, that a
respondent is a nonbank covered person that is engaging, or has
engaged, in conduct that poses risks to consumers with regard to the
offering or provision of consumer financial products or services and
the issuance of a decision and order subjecting a respondent to the
Bureau's supervisory authority pursuant to 12 U.S.C. 5514(a)(1)(C);
(v) The Associate Director shall serve a respondent with a notice
of the date and time of a supplemental oral response, if a respondent
has requested the opportunity to present a supplemental oral response,
within 14 days of the Associate Director's receipt of a timely-filed
response;
(vi) If a respondent has not requested the opportunity to present a
supplemental oral response, the Associate Director shall, not later
than 45 days after receiving a timely-filed response, or not later than
45 days after the service of a Notice of Reasonable Cause when a
respondent fails to file a timely response, provide a recommended
determination to the Director including either a proposed decision and
order subjecting a respondent to the Bureau's supervisory authority
pursuant to 12 U.S.C. 5514(a)(1)(C), or a proposed notification that
the Bureau has determined not to subject a respondent to the Bureau's
supervisory authority at that time, pursuant to Sec. 1091.108; and
(vii) In connection with a proceeding under this part, including a
petition for termination under Sec. 1091.113, all
[[Page 20403]]
documents, records or other items submitted by a respondent to the
Bureau, all documents prepared by, or on behalf of, or for the use of
the Bureau, and any communications between the Bureau and a person,
shall be deemed confidential supervisory information under 12 CFR
1070.2(i).
(b) A Notice shall be accompanied by a form of consent agreement by
which a respondent may voluntarily consent to the Bureau's authority to
supervise a respondent under 12 U.S.C. 5514. A completed and executed
form of consent agreement under this paragraph:
(1) Shall not constitute an admission that a respondent is a
nonbank covered person that is engaging, or has engaged, in conduct
that poses risks to consumers with regard to the offering or provision
of consumer financial products or services;
(2) Shall result in an order by the Director that a respondent is
subject to the Bureau's supervisory authority under 12 U.S.C. 5514 for
a period of two years from the date of such order; and
(3) Shall include a provision that a respondent entering into a
consent agreement waives any right to judicial review of such consent
agreement.
(c) Nothing in this section shall be construed as requiring the
Bureau to produce any documents or other information to a respondent
other than as set forth in this section.
Sec. 1091.104 Service of Notice.
(a) A Notice of Reasonable Cause shall be served on a respondent as
follows:
(1) To individuals. A Notice shall be served on a respondent that
is a natural person by delivering a copy of the Notice to the
individual or to an agent authorized by appointment or by law to
receive such a Notice. Delivery, for purposes of this paragraph, means
handing a copy of a Notice to the individual; or leaving a copy at the
individual's office with a clerk or other person in charge thereof; or
leaving a copy at the individual's dwelling house or usual place of
abode with some person of suitable age and discretion then residing
therein; or sending a copy of a Notice addressed to the individual
through the U.S. Postal Service by Registered Mail, Certified Mail or
Express Mail delivery, or by third-party commercial carrier, for
overnight delivery and obtaining a confirmation of receipt.
(2) To corporations or entities. Notice shall be served on a person
other than an individual by delivering a copy of a Notice to an
officer, managing or general agent, or any other agent authorized by
appointment or law to receive such a Notice, by any method specified in
paragraph (a)(1) of this section.
(3) Upon persons registered with the Bureau. In addition to any
other method of service specified in paragraph (a)(1) or (2) of this
section, Notice may be served on a person registered with the Bureau by
sending a copy of a Notice addressed to the most recent business
address shown on the person's registration form by U.S. Postal Service
Certified, Registered, or Express Mail and obtaining a confirmation of
receipt or attempted delivery.
(4) Upon persons in a foreign country. Notice may be served on a
person in a foreign country by any method specified in paragraph (a)(1)
or (2) of this section, or by any other method reasonably calculated to
give notice, provided that the method of service used is not prohibited
by the law of the foreign country.
(5) Record of service. The Bureau shall maintain a record of
service of a Notice on a respondent, identifying the party given
Notice, the method of service, the date of service, the address to
which service was made, and the person who made service. If service is
made in person, the certificate of service shall state, if available,
the name of the individual to whom a Notice was given. If service is
made by U.S. Postal Service Registered Mail, Certified Mail, or Express
Mail, the Bureau shall maintain the confirmation of receipt or
attempted delivery.
(6) Waiver of service. In lieu of service as set forth in paragraph
(a)(1) or (2) of this section, a person may be provided a copy of a
Notice by First Class Mail or other reliable means if a written waiver
of service is obtained from the person to be served. In the case of a
respondent that is not a natural person, a written waiver may be
provided by an officer, managing or general member, or partner
authorized to represent the respondent.
(b) The initiating official shall promptly submit a copy of a
Notice and a copy of the certificate of service to the Associate
Director.
Sec. 1091.105 Response.
(a) Timing. Within 30 days of service of a Notice, a respondent
shall file any response with the Associate Director according to the
instructions set forth in a Notice.
(b) Content of the response. (1) The response shall set forth the
basis for a respondent's contention that the respondent is not a
nonbank covered person that is engaging, or has engaged, in conduct
that poses risks to consumers with regard to the offering or provision
of consumer financial products or services.
(2) The response shall include all documents, records, or other
evidence a respondent wishes to use to support the arguments or
assertions set forth in the response.
(3) Any request to present a supplemental oral response, including
the respondent's preference for a telephonic or in-person supplemental
oral response, must be included in the response. A respondent's failure
to request to present a supplemental oral response shall constitute a
waiver of the opportunity to present a supplemental oral response.
(4) A response shall include an affidavit or declaration, made by
the individual respondent if a natural person, or, if a corporate or
other entity that is not a natural person, by an officer, managing or
general member, or partner authorized to represent the respondent,
affirming that the response is true and accurate and does not contain
any omissions that would cause the response to be materially
misleading.
(5) Notwithstanding any other provisions of this paragraph (b), a
respondent may respond to a Notice of Reasonable Cause by voluntarily
consenting to the Bureau's authority to supervise the respondent under
12 U.S.C. 5514 by completing and executing the consent agreement form
provided to the respondent with a Notice of Reasonable Cause in
accordance with Sec. 1091.103(b).
(c) Default. Failure of a respondent to file a response within the
time period set forth in paragraph (a) of this section shall constitute
a waiver of the respondent's right to respond, and shall, based on the
Notice, authorize the Associate Director, without further notice to the
respondent, to issue a proposed decision and order as provided in Sec.
1091.108(c)(1) and the Director to issue a decision and order as
provided in Sec. 1091.109(a)(1).
(d) Waiver. A respondent shall be deemed to have waived the right,
at any future stage of an Associate Director's or the Director's
consideration of a matter, and in any petition for judicial review of
an order issued pursuant to Sec. 1091.109(a)(1), to rely on any
argument, record, document, or other information that the respondent
does not raise or include in its response.
(e) No Discovery. There shall be no discovery in connection with a
response.
Sec. 1091.106 Supplemental oral response.
(a) A respondent may request in a response under Sec. 1091.105 the
[[Page 20404]]
opportunity to present to the Associate Director a supplemental oral
response in support of a respondent's assertion that the respondent is
not a nonbank covered person that is engaging, or has engaged, in
conduct that poses risks to consumers with regard to the offering or
provision of consumer financial products or services.
(b) The conduct of a supplemental oral response shall be subject to
the following procedures:
(1) A supplemental oral response shall be, at the respondent's
preference, by telephone or in person at the Bureau's headquarters in
Washington, DC. If a respondent requests in its written response a
supplemental oral response but does not specify whether such response
shall be conducted via telephone or in person, the supplemental oral
response will be conducted by telephone unless otherwise directed by
the Associate Director;
(2) The Associate Director may impose any limitations on the
conduct of a supplemental oral response, including but not limited to
establishing a time limit for the presentation of a supplemental oral
response, and limiting the subjects to be addressed in a supplemental
oral response;
(3) There shall be no discovery permitted or witnesses called in
connection with a supplemental oral response;
(4) If a respondent is a corporate or other entity, and not a
natural person, the respondent shall be represented in any supplemental
oral response by:
(i) An officer, managing or general member, or partner authorized
to represent the respondent; or
(ii) An attorney in good standing of the bar of the highest court
of any State.
(5) If a respondent is a natural person, the respondent shall be
represented in any supplemental oral response by:
(i) Himself or herself; or
(ii) An attorney in good standing of the bar of the highest court
of any State.
(6) The Associate Director shall cause an audio recording of a
supplemental oral response to be made by a court reporter. A respondent
may purchase a copy or transcript of the recording at the respondent's
own expense.
(c) The initiating official may participate in any supplemental
oral response conducted under this section.
(d) The Associate Director shall serve on a respondent, within 14
days after the Associate Director receives the respondent's timely-
filed response requesting a supplemental oral response, a notice
setting forth the date, time, and general information relating to the
conduct of a supplemental oral response. The date of a supplemental
oral response shall be scheduled not less than ten days after the date
the respondent is served with the notice of supplemental oral response.
(e) The notice of supplemental oral response shall be served on a
respondent pursuant to Sec. 1091.107.
(f) The Associate Director shall send a copy of the notice of
supplemental oral response to the initiating official.
(g) A respondent's failure to participate in a supplemental oral
response scheduled by the Associate Director shall constitute the
respondent's waiver of the opportunity to present a supplemental oral
response.
Sec. 1091.107 Manner of filing and serving papers.
Unless otherwise specified by the Associate Director or Director, a
respondent shall file the response and any other paper with the
Executive Secretary at the mailing or electronic address provided by
the Bureau, and the Associate Director and Director shall serve any
paper, other than a Notice as set forth in Sec. 1091.104, on a
respondent, by:
(a) Electronic transmission upon any condition specified by the
Associate Director or Director; or
(b) Any of the following methods if a respondent demonstrates
electronic filing is not practicable and the Associate Director or
Director permits:
(1) Personal delivery;
(2) Delivery through a reliable commercial courier service or
overnight delivery service; or
(3) Mailing the papers by U.S. Postal Service First Class,
Registered, Certified, or Express Mail.
Sec. 1091.108 Recommended determination.
(a) If a respondent did not voluntarily consent to the Bureau's
supervision authority, and did not request the opportunity to present a
supplemental oral response, not later than 45 days after receipt of a
timely-filed response, or not later than 45 days after the service of a
Notice of Reasonable Cause when a respondent fails to file a timely
response, the Associate Director shall make a recommended determination
whether there is reasonable cause for the Bureau to determine that the
respondent is a nonbank covered person that is engaging, or has
engaged, in conduct that poses risks to consumers with regard to the
offering or provision of consumer financial products or services which
should result in an order subjecting the respondent to the Bureau's
authority under 12 U.S.C. 5514(a)(1)(C).
(b) If a respondent did request the opportunity to present a
supplemental oral response, not later than 90 days after service of a
Notice of Reasonable Cause, the Associate Director shall make a
recommended determination whether there is reasonable cause for the
Bureau to determine that the respondent is a nonbank covered person
that is engaging, or has engaged, in conduct that poses risks to
consumers with regard to the offering or provision of consumer
financial products or services which should result in an order
subjecting the respondent to the Bureau's authority under 12 U.S.C.
5514(a)(1)(C).
(c) Upon making the recommended determination described in
paragraph (a) or (b) of this section, the Associate Director shall
submit to the Director either:
(1) A proposed decision and order that would subject a respondent
to the Bureau's supervisory authority pursuant to 12 U.S.C.
5514(a)(1)(C) if adopted by the Director; or
(2) A proposed notification that a respondent should not be
subjected to the Bureau's supervisory authority under 12 U.S.C.
5514(a)(1)(C) based on the proceedings. Such a notification shall have
no precedential effect and shall not prevent the issuance of another
Notice of Reasonable Cause pursuant to either Sec. 1091.102, or the
procedures set forth in Sec. 1091.111, at any time, or from issuance
of a decision and order based on another Notice recommending that a
respondent be subject to the Bureau's authority pursuant to either of
those sections.
(d) Any proposed decision and order issued by the Associate
Director pursuant to paragraph (c)(1) of this section shall set forth:
(1) A statement that the Associate Director has preliminarily
determined based on reasonable cause that a respondent is a nonbank
covered person that is engaging, or has engaged, in conduct that poses
risks to consumers with regard to the offering or provision of consumer
financial products or services;
(2) The basis for the Associate Director's determination; and
(3) A proposed order directing that, pursuant to this
determination, as of a specified date a respondent shall be subject to
the Bureau's supervisory authority under 12 U.S.C. 5514.
(e) The Associate Director shall include with the recommended
determination submitted to the Director copies of the following:
(1) The Notice of Reasonable Cause;
(2) The record of service of a Notice of Reasonable Cause;
[[Page 20405]]
(3) A respondent's response and any documents, records, or other
items filed with the written response;
(4) Any document, record, or other item considered by the Associate
Director to be material in making a recommended determination; and
(5) An audio recording of a supplemental oral response, if a
supplemental oral response was conducted, and/or a transcript if a
transcript was prepared at a respondent's request or if requested by
the Director.
(f) The requirement that the Associate Director provide to the
Director the items described in paragraph (e) of this section shall
confer no substantive rights on a respondent and any omission of an
item may be cured by the Associate Director to the extent applicable.
Sec. 1091.109 Determination by the Director.
(a) Not later than 45 days after receipt of the Associate
Director's recommended determination, the Director shall, after
considering the recommended determination and all documents, records,
and other items submitted therewith by the Associate Director, make a
determination either adopting without revision, modifying, or rejecting
the Associate Director's recommended determination, and shall issue to
respondent, with copies to the Associate Director and the initiating
official:
(1) A decision and order subjecting the respondent to the Bureau's
supervisory authority pursuant to 12 U.S.C. 5514(a)(1)(C); or
(2) A notification that the Director has determined that the
respondent is not subject to the Bureau's supervisory authority under
12 U.S.C. 5514(a)(1)(C) as a result of the proceedings. Such
notification shall have no precedential effect and shall not prevent
the issuance of another Notice of Reasonable Cause pursuant to either
Sec. 1091.102, or the procedures set forth in Sec. 1091.111, at any
time, or the issuance of an order based on another Notice subjecting
the respondent to the Bureau's authority pursuant to either of those
sections.
(b) Any decision and order issued by the Director pursuant to
paragraph (a)(1) of this section shall include:
(1) A statement that the Director adopts the Associate Director's
proposed decision and order without revision as the Director's decision
and order, or that the Director rejects or modifies the Associate
Director's proposed determination for reasons set forth by the
Director;
(2) A statement that the Director has determined that the Bureau
has reasonable cause to determine that a respondent is a nonbank
covered person that is engaging, or has engaged, in conduct that poses
risks to consumers with regard to the offering or provision of consumer
financial products or services;
(3) The basis for the Director's determination, which may be an
adoption of the basis set forth in the Associate Director's proposed
decision;
(4) An order directing that, pursuant to this determination, as of
a specified date a respondent shall be subject to the Bureau's
supervisory authority under 12 U.S.C. 5514 and informing a respondent
that the respondent may petition for termination of the Bureau's
supervisory authority no sooner than two years from the date of the
order, and no more than annually thereafter; and
(5) A copy of the recommended determination issued by the Associate
Director.
(c) Only decisional employees may advise and assist the Director in
the consideration and disposition of a proceeding under this part.
(d) A decision and order issued pursuant to paragraph (a)(1) of
this section shall constitute final agency action under 5 U.S.C. 704.
(e) Any item required to be served on a respondent under this
section shall be served pursuant to Sec. 1091.107.
Sec. 1091.110 Voluntary consent to Bureau's authority.
(a) Notwithstanding any other provision, pursuant to a consent
agreement agreed to by the Bureau, a person may voluntarily consent to
the Bureau's supervisory authority under 12 U.S.C. 5514, and such
voluntary consent agreement shall not be subject to any right of
judicial review.
(b) The consent agreement of any person, pursuant to paragraph (a)
of this section, that specifies the duration of time that such person
will be subject to the Bureau's authority under 12 U.S.C. 5514 shall
not be eligible for a petition for termination of order pursuant to
Sec. 1091.113, and a consent agreement shall state that a respondent
entering into a consent agreement waives any right to judicial review
of such consent agreement.
Sec. 1091.111 Notice and response included in adjudication proceeding
otherwise brought by the Bureau.
(a) Notwithstanding Sec. Sec. 1091.102 through 1091.106, the
Bureau may, in its discretion, provide the notice and opportunity to
respond required by 12 U.S.C. 5514(a)(1)(C) in a notice of charges
otherwise brought by the Bureau pursuant to 12 CFR 1081.200 and the
adjudication proceedings pursuant to part 1081. Also, a person may
agree to submit to the Bureau's supervisory authority under 12 U.S.C.
5514(a)(1)(C) as part of a consent order entered into in connection
with an adjudication proceeding or civil action.
(b) If the Bureau chooses to proceed in the manner described in
paragraph (a) of this section, it shall so indicate in the notice of
charges, and any order of the Director resulting from the notice of
charges shall constitute the order referred to in 12 U.S.C.
5514(a)(1)(C).
(c) If the Bureau proceeds pursuant to paragraph (a) of this
section, the provisions of Sec. Sec. 1091.101 through 1091.110, and
Sec. Sec. 1091.113 through 1091.115 will be inapplicable to such
proceeding.
Sec. 1091.112 No limitation on relief sought in civil action or
administrative adjudication.
Nothing in this part shall be construed to limit the relief the
Bureau may seek in any civil action or administrative adjudication,
including but not limited to, seeking an order to have a person deemed
subject to the Bureau's supervisory authority under 12 U.S.C. 5514,
including for the reasons set forth in 12 U.S.C. 5514(a)(1)(C).
Subpart C--Post-Determination Procedures
Sec. 1091.113 Petition for termination of order.
(a) Any person subject to an order issued pursuant to Sec.
1091.109(a)(1) may, no sooner than two years after issuance of such an
order and no more frequently than annually thereafter, petition the
Director for termination of the order.
(b) A petition for termination submitted pursuant to paragraph (a)
of this section shall set forth the reasons supporting termination of
the order, including any actions taken by a respondent since issuance
of the order to address the conduct that led to issuance of the order,
and may include any supporting information or evidence that the
petitioner believes is relevant to the Director's determination of the
matter.
(c) A petition for termination shall be filed by the petitioner
with the Executive Secretary at the mailing or electronic address
provided by the Bureau.
(d) The Director shall, promptly upon receipt of a petition for
termination, send a copy of the same to the initiating official.
(1) The initiating official may, within 30 days of his or her
receipt of a copy of a petition for termination, file with the Director
a response to the petition
[[Page 20406]]
stating whether the initiating official recommends that the order be
terminated, or modified, or that the petition for termination be denied
and the basis for such recommendation.
(2) The initiating official shall serve a copy of the response to a
petition for termination on the petitioner pursuant to Sec. 1091.107
at the time of filing it with the Director.
(e) Not later than 90 days after submission of a petition under
paragraph (a) of this section, the Director shall issue a written
decision either terminating or modifying the order, or denying the
petition. If the Director modifies the order or denies the petition,
the Director shall explain the basis for his or her decision with
respect to the petition and send the written decision to the petitioner
and the initiating official.
(1) The Director shall serve the written decision on a petition for
termination of order on a respondent pursuant to Sec. 1091.107.
(2) The Director shall send a copy of the written decision on a
petition for termination of order to the Associate Director and
initiating official promptly upon issuing the written decision.
(3) The decision of the Director made pursuant to this paragraph
(e) shall constitute final agency action under 5 U.S.C. 704.
Subpart D--Time Limits and Deadlines
Sec. 1091.114 Construction of time limits.
(a) General rule. In computing any period of time prescribed by
this part, or by order of the Associate Director or Director, the date
of the act or event that commences the designated period of time is not
included. The last day so computed is included unless it is a Saturday,
Sunday, or Federal holiday as set forth in 5 U.S.C. 6103(a). When the
last day is a Saturday, Sunday, or Federal holiday, the period runs
until the end of the next day that is not a Saturday, Sunday, or
Federal holiday. Intermediate Saturdays, Sundays, and Federal holidays
are included in the computation of time, except when the time period
within which an act is to be performed is ten days or less, not
including any additional time allowed for in paragraph (c) of this
section.
(b) Filing or service of papers. Filing and service are deemed to
be effective:
(1) In the case of personal service or same day commercial courier
delivery, upon actual receipt by the person served;
(2) In the case of overnight commercial delivery service, U.S.
Postal Service Express Mail delivery, or First Class, Registered, or
Certified Mail, upon deposit in or delivery to an appropriate point of
collection; or
(3) In the case of electronic transmission, including email, upon
transmission.
(c) Calculation of time for service and filing of responsive
papers. Whenever a time limit is measured by a prescribed period from
the service of any notice or paper, the applicable time limits are
calculated as follows:
(1) If service is made by U.S. Postal Service First Class,
Registered, or Certified Mail, add three calendar days to the
prescribed period;
(2) If service is made by Express Mail or overnight delivery
service, add one calendar day to the prescribed period; or
(3) If service is made by electronic transmission, add one calendar
day to the prescribed period.
Sec. 1091.115 Change of time limits and confidentiality of
proceedings.
(a) Except as otherwise provided by law, the Associate Director
until the issuance of a recommended determination, or the Director at
any time thereafter, at their respective discretion, may extend the
time limits prescribed by this part or by any notice or order issued
pursuant to this part. Any request for an extension of a time limit by
a respondent must be for good cause shown, in writing, and filed with
the Associate Director or Director, as appropriate. The mere filing of
a written request for an extension does not alleviate a respondent of
the obligation to meet an applicable time limit absent written
confirmation that an extension has been granted.
(b) Deadlines for action by the initiating official, Associate
Director, or the Director established in this part confer no
substantive rights on respondents.
(c) In connection with a proceeding under this part, including a
petition for termination under Sec. 1091.113, all documents, records
or other items submitted by a respondent to the Bureau, all documents
prepared by, or on behalf of, or for the use of the Bureau, and any
communications between the Bureau and a person, shall be deemed
confidential supervisory information under 12 CFR 1070.2(i)(1).
Russell Vought,
Acting Director, Consumer Financial Protection Bureau.
[FR Doc. 2025-08347 Filed 5-13-25; 8:45 am]
BILLING CODE 4810-AM-P
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</html>Indexed from Federal Register on May 14, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.