The American Bankers Association this week joined three associations in voicing support for a Consumer Financial Protection Bureau proposal to rescind a set of changes to the bureau’s rules that, among other things, gave its director authority to resolve adjudication hearings overseen by the agency.
The CFPB in 2022 amended its adjudication procedures to make numerous changes. ABA and the other associations opposed the changes because they concentrated adjudicative authority in the director and made it more difficult for regulated entities to access Article III courts.
The current CFPB leadership has proposed to rescind those changes, raising particular concern with the decision to allow the bureau director to resolve disputes rather than the officer presiding over the hearing. In a joint letter supporting the current proposal to rescind the amendments, the associations reiterated their concerns that the 2022 changes created legal instability and risked depriving defendants of due process.
The associations added that they would welcome a future opportunity to provide input on how to further improve the CFPB’s adjudication process.
