Alert October 15, 2013

CFPB Ceases its Practice of Using Enforcement Attorneys During Supervisory Examinations

After concerns from the industry, its own ombudsman, and the Office of Inspector General for the Federal Reserve Board and the CFPB, the CFPB has announced that effective November 1, 2013, it will cease having enforcement attorneys present during examinations of supervised entities. Previously, the CFPB’s Ombudsman recommended the review of this practice (see December 11, 2012 Alert). The OIG also noted in March that it was evaluating the CFPB’s practice (see March 19, 2013 Alert). Such practice was a cause for concern among consumer financial service providers.