Alert August 09, 2011

CFPB Issues Interim Final Rule on Practices for Adjudication Proceedings

The Consumer Financial Protection Bureau issued an interim final rule that establishes its practices for adjudication proceedings. The Consumer Financial Protection Act of 2010 authorizes the CFPB to use administrative adjudications to enforce compliance with the provisions of the Act, rules promulgated by the CFPB, and any other Federal law or regulation that the CFPB enforces. The rule is modeled on the uniform rules and procedures for administrative hearings adopted by the federal banking regulators and the rules of practice currently used by the SEC and FTC. The rule went into effect on July 28, 2011, and comments must be received by September 26, 2011. Click here for the rule.