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
#FreeGasFriday courtesy of @tvfcu, TN #creditunions http://t.co/wDRFYJVlpz
52 minutes ago
If you were unable to watch or attend @cuna 's @thehill Hill forum on Wed., you can now watch the archived version: http://t.co/FhUnp7HbU8
2 hours ago
Time is running out. If you haven't taken the #NewsNow readership survey, please click here now: http://t.co/4Gp6C2Wa4o
2 hours ago
African financial inclusion possible with mobile money: @IMFNews study http://t.co/0V5DTQToxY
3 hours ago
Louise Herring's birthday is Saturday. 105 years later, her legacy lives on through her kids http://t.co/oMqGADmo0d http://t.co/T3NmS9NqEY
3 hours ago