The Consumer Financial Protection Bureau today rescinded a series of changes made to its rules that, among other things, gave its director authority to resolve adjudication hearings overseen by the agency.
The CFPB in 2022 and 2023 amended its adjudication procedures to make numerous changes to the process, including transferring authority to decide dispositive motions from the hearing officer presiding over the proceedings to the director. The American Bankers Association opposed the changes because they concentrated adjudicative authority in the director, risked depriving defendants of their due process right to an impartial tribunal, and made it more difficult for regulated entities to access Article III courts. Earlier this year, ABA joined other associations in reiterating their concerns to the bureau’s new leadership.
In a final rule issued today, CFPB said that after considering public comments, it decided to rescind most of the previous amendments, except those related to narrow clarificatory and procedural changes. It specifically cited concerns made by ABA and others that the amendments “concentrated greater power in the director, particularly by allowing the director to rule on dispositive motions.”
