Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
CFPB Removes Enforcement Attorneys From On-Site Exams
WASHINGTON (10/15/13)--The Consumer Financial Protection Bureau's decision to remove enforcement attorneys from on-site examinations "is a wise move on CFPB's part," Credit Union National Association General Counsel Eric Richard said Monday.

"Having enforcement attorneys take part in exams can imply some kind of punitive intent that can chill open communications between examiners and financial institutions.  Plus, taking part in exams can transform enforcement attorneys into witnesses, which often creates a conflict of interest," Richard added.

The CFPB said enforcement attorneys will continue to coordinate with examiners offsite, and will work closely with supervision examiners to ensure that the financial institutions the CFPB oversees are following the rules, the CFPB said. "We think this approach will result in better overall oversight," a CFPB representative told News Now.

The CFPB, she said, found that it was not efficient to have both examiners and enforcement attorneys physically present on exams. American Banker last week reported that banking representatives had complained about the enforcement attorney role in examinations. The attorneys, some said, were hampering communication between institutions and examiners.

Credit unions with less than $10 billion in assets are exempt from supervision and enforcement by the CFPB. CUNA continues to press the CFPB to minimize the impact of CFPB rules on credit unions where possible and appropriate.


RSS print
News Now LiveWire
NCUA Ch. Matz said the FOM proposal is the result of enforcement actions taken where CUs advertised open FOMs.
37 minutes ago
.@TheNCUA wants to know if there are other categories that should get automatic approval, staff says.
38 minutes ago
Alumni,homeowner assoc,labor unions, electric coops,scouting & church groups,assn. to further culture of nt'l or ethnic group are auto OKed.
40 minutes ago
Corporate separateness also would be required under FOM proposal. Separate physical location from FCU too.
45 minutes ago
An association must be found not to have been found to be formed for the purpose of being added to FOM, @TheNCUA says.
46 minutes ago