The CFPB denied a debt settlement company’s petition to set aside a civil investigative demand. In denying the petition, the CFPB cited the untimeliness of the petition, pursuant to the CFPB’s rules regarding investigations (see June 12, 2012 Alert), and the company’s failure to meet and confer with CFPB staff prior to filing the petition. The CFPB’s rules on investigations require subject companies to file a petition to modify or set aside a CID within 20 calendar days of service of the CID. The ruling again serves as a cautionary tale to future parties of the importance of meeting and conferring with the CFPB prior to challenging CIDs. In the CFPB’s first denial of a petition to set aside a CID, the CFPB highlighted the company’s failure to make a “good faith effort” to negotiate the terms of the CID (see October 2, 2012 Alert).
Alert November 13, 2012