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Strengthens and clarifies how civil investigative demands (CIDs) from the consumer finance regulator are issued and challenged. It lets an advising attorney ask the Bureau clarifying questions about a demand and allows the Bureau to respond and, if needed, extend the return date and the deadline to file a petition. It also expands confidentiality to cover what’s in a petition challenging a CID, spells out the legal reasons a demand can be set aside, and makes the Bureau’s denial of a petition reviewable in court. This aims to improve due process for investigated parties without changing the Bureau’s core enforcement powers.
Amend Section 1052(c)(1) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5562(c)(1)) to insert additional text (file shows an insertion is made but the inserted text is not included in the provided excerpt).
Amend Section 1052(c)(2) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5562(c)(2)) to insert additional text (file shows an insertion is made but the inserted text is not included in the provided excerpt).
Add a new clause 1052(c)(13)(D)(v) allowing an attorney who is advising a person described in clause (i) to submit questions to the Bureau about the scope or breadth of a civil investigative demand. The Bureau must submit a response to those questions, and when questions are submitted the Bureau may include with its response an extension of the return date and the deadline to file a petition to modify or set aside the demand. (The provided excerpt shows the Bureau’s response timing phrase begins “during the shorter of—” but the excerpt does not include the rest of that timing language.)
Amend Section 1052(d) to change the subsection heading and to expand the confidentiality provision in paragraph (1) to cover “tangible things, and the contents of any petition submitted to the Bureau in accordance with subsection (f).” In other words, the contents of petitions filed under subsection (f) are added to the items receiving confidential treatment.
Replace Section 1052(f)(3) with a clarified list of specific grounds on which a person may obtain an order setting aside or modifying a demand. The listed grounds are: (A) the demand fails to comply with the provisions of the section; (B) the demand violates a constitutional or other legal right or privilege of the person; or (C) the person demonstrates that the demand is (i) unduly burdensome, disproportionately expensive, and outside the scope of the inquiry, or (ii) unreasonably cumulative or duplicative, or can be obtained from another source that is more convenient, less burdensome, or less expensive.
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Referred to the House Committee on Financial Services.
Introduced February 27, 2025 by Garland H. Barr · Last progress February 27, 2025
Referred to the House Committee on Financial Services.
Introduced in House