The rule includes more options to resolve an appeal of a CFPB examination and broadens bureau staff eligible to review appeals from financial institutions.
02/19/2024 2:45 P.M.
3 minute read
Financial institutions seeking to appeal findings of a Consumer Financial Protection Bureau supervisory examination have additional options following a review of the process by the bureau.
The CFPB reviewed its supervisory appeals process, which has been in place since 2015, and as a result added officials who are eligible to evaluate appeals, resolution options and the matters subject to appeal.
The changes include, according to a news release:
- “The [s]upervision [d]irector will select an appeals committee of three CFPB managers with relevant expertise who did not work on the matter being appealed, and who will advise the [s]upervision [d]irector in conjunction with attorneys assigned by the CFPB’s [g]eneral [c]ounsel.
- The appeals committee will now be able to remand a matter to [s]upervision staff for consideration of a modified finding, in addition to the existing options of upholding or rescinding the finding.
- Institutions may now file an appeal of any compliance rating or finding, not only an adverse rating.”
The updated supervisory appeals process (PDF) includes a recap of a CFPB examination ACA International members should review, such as requirements for supervised entities and examiners.
It also notes that supervised entities are encouraged to participate in the review of preliminary findings when they are subject to a supervisory exam, creating the opportunity for disputes to be resolved before examination findings are made final.
If a supervised entity has an appeal, it may be submitted within 30 days of receiving an appealable examination report containing a compliance rating—or an appealable supervisory letter—to [email protected].
The subject line of the email should state the name of the supervised entity and include the words: “APPEAL OF SUPERVISORY MATTER.”
This revised supervisory appeals process applies to any appeal pending with supervision on the date as of Feb. 22, 2024, when the update was published in the Federal Register.
The committee designated to an appeal will provide a written decision, which may uphold or rescind the finding; or send it to supervision staff who will consider a modified finding.
The CFPB anticipates that a decision will be issued within 60 business days after an appeal is assigned to the committee, but the committee will notify the supervised entity by email if more time is needed.
As part of the appeals process, the CFPB also has measures in place to ensure that a supervised entity’s appeal filing does not have an adverse impact on its supervisory relationship with the CFPB.
Entities with concerns about the impact of an appeal can contact the CFPB’s Ombudsman for assistance on how to resolve the matter.
As has been the case in the past, the CFPB will share takeaways from examiners’ supervisory findings in the Supervisory Highlights reports without naming those involved.
Most recently, the CFPB published a special edition of its supervisory highlights focused on efforts to stop “junk fees,” ACA previously reported.
In related news, the Feb. 21 ACA Huddle will cover a comprehensive overview of the CFPB’s enforcement action against Strategic Financial Solutions, offering a detailed analysis of the hot issues specific to Strategic and its background.
This Huddle aims to equip ACA members with a thorough understanding of the regulatory challenges faced by Strategic Financial Solutions and the potential impact on similar entities within the industry.
ACA members may also want to attend or revisit the on-demand Core Course Understanding and Responding to the CFPB’s Expectations, which describes priorities outlined in the bureau’s supervision and examination manual.
Remember, subscribe to ACA Daily and Member Alerts under your My ACA profile when logged in to acainternational.org to receive updates on the ACA Huddle.