83 FR 3686 - Request for Information Regarding Bureau Civil Investigative Demands and Associated Processes

BUREAU OF CONSUMER FINANCIAL PROTECTION

Federal Register Volume 83, Issue 18 (January 26, 2018)

Page Range		3686-3687
FR Document		2018-01435
The Bureau of Consumer Financial Protection (Bureau) is seeking comments and information from interested parties to assist the Bureau in assessing potential changes that can be implemented to the Bureau's Civil Investigative Demand (CID) processes, consistent with law, to consider whether any changes to the processes would be appropriate.
Federal Register, Volume 83 Issue 18 (Friday, January 26, 2018)
[Federal Register Volume 83, Number 18 (Friday, January 26, 2018)]
[Notices]
[Pages 3686-3687]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-01435]



[[Page 3686]]

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BUREAU OF CONSUMER FINANCIAL PROTECTION

[Docket No. CFPB-2018-0001]


Request for Information Regarding Bureau Civil Investigative 
Demands and Associated Processes

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Notice and request for information.

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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is 
seeking comments and information from interested parties to assist the 
Bureau in assessing potential changes that can be implemented to the 
Bureau's Civil Investigative Demand (CID) processes, consistent with 
law, to consider whether any changes to the processes would be 
appropriate.

DATES: Comments must be received by March 27, 2018.

ADDRESSES: You may submit responsive information and other comments, 
identified by Docket No. CFPB-2018-0001, by any of the following 
methods:
     Electronic: Go to http://www.regulations.gov. Follow the 
instructions for submitting comments.
     Email: [email protected]. Include Docket 
No. CFPB-2018-0001 in the subject line of the message.
     Mail: Monica Jackson, Office of the Executive Secretary, 
Consumer Financial Protection Bureau, 1700 G Street NW, Washington, DC 
20552.
     Hand Delivery/Courier: Monica Jackson Office of the 
Executive Secretary, Consumer Financial Protection Bureau, 1700 G 
Street NW, Washington, DC 20552.
    Instructions: The Bureau encourages the early submission of 
comments. All submissions must include the document title and docket 
number. Because paper mail in the Washington, DC area and at the Bureau 
is subject to delay, commenters are encouraged to submit comments 
electronically. In general, all comments received will be posted 
without change to http://www.regulations.gov. In addition, comments 
will be available for public inspection and copying at 1700 G St NW, 
Washington, DC 20552, on official business days between the hours of 10 
a.m. and 5 p.m. eastern standard time. You can make an appointment to 
inspect the documents by telephoning 202-435-7275.
    All submissions in response to this request for information, 
including attachments and other supporting materials, will become part 
of the public record and subject to public disclosure. Sensitive 
personal information, such as account numbers or Social Security 
numbers, or names of other individuals, should not be included. 
Submissions will not be edited to remove any identifying or contact 
information.

FOR FURTHER INFORMATION CONTACT: For general inquiries and submission 
process questions, please call Monica Jackson at (202) 435-7275.

SUPPLEMENTARY INFORMATION: In the course of its investigatory 
activities, and as authorized by 12 U.S.C. 5562 and 12 CFR 1080.6, the 
Bureau issues CIDs to entities and persons whom the Bureau has reason 
to believe may have information relevant to a violation of the laws the 
Bureau enforces. These demands require recipients to provide the Bureau 
with information in varying forms: Most frequently some combination of 
written answers to interrogatories, written reports, documents, 
tangible things, and testimony. Recipients are required to produce the 
requested information to the Bureau, which uses such information to 
further investigations of potential violations of Federal consumer 
financial laws.
    To assess the efficiency and effectiveness of its existing CID 
processes, the Bureau is, as described below, issuing this request for 
information seeking public comment on how best to achieve meaningful 
burden reduction or other improvement to the CID processes while 
continuing to achieve the Bureau's statutory and regulatory objectives.

Overview of This Request for Information

    The Bureau is using this request for information to seek public 
input regarding the exercise of its authority to issue CIDs, including 
from entities who have received one or more CIDs from the Bureau, or 
members of the bar who represent these entities.
    The issuance of CIDs is an essential tool for fulfilling the 
Bureau's statutory mission of enforcing Federal consumer financial law. 
The Bureau issues CIDs in accordance with the law and in furtherance of 
its investigatory objectives. The Bureau understands, however, that 
responding to a CID can impose burdens on the recipients. Entities who 
have received one or more CIDs, members of the bar who represent these 
entities, and members of the public are likely to have useful 
information and perspectives on the benefits and burdens of the 
Bureau's existing processes related to CIDs. The Bureau is especially 
interested in better understanding how its processes related to CIDs 
may be updated, streamlined, or revised to better achieve the Bureau's 
statutory and regulatory objectives, while minimizing burdens, 
consistent with applicable law, and how to align the Bureau's CID 
processes with those of other agencies with similar authorities. 
Interested parties may also be well-positioned to identify those parts 
of the Bureau's processes related to CIDs that are most in need of 
improvement, and, thus, assist the Bureau in prioritizing and properly 
tailoring its review process. In short, engaging CID recipients, 
potential CID recipients, and the public in an open, transparent 
process will help inform the Bureau's review of its processes related 
to CIDs.

Questions for Commenters

    To allow the Bureau to more effectively evaluate suggestions, the 
Bureau requests that, where possible, comments include:
     Specific suggestions regarding any potential updates or 
modifications to the Bureau's practices regarding the formulation, 
issuance, or modification of CIDs consistent with the Bureau's 
regulatory and statutory objectives, including, in as much detail as 
possible, the potential update or modification, supporting data or 
other information such as cost information or information concerning 
alignment with the processes of other agencies with similar 
authorities; and
     Specific identification of any aspects of the Bureau's CID 
processes that should not be modified, including supporting data or 
other information such as cost information or information concerning 
alignment with the processes of other agencies with similar 
authorities.
    The following list of questions represents a preliminary attempt by 
the Bureau to identify elements of Bureau processes related to CIDs on 
which it should immediately focus. This non-exhaustive list is meant to 
assist in the formulation of comments and is not intended to restrict 
the issues that may be addressed. In addressing these questions or 
others, the Bureau requests that commenters identify with specificity 
the Bureau regulations or practices at issue, providing legal citations 
where appropriate and available.
    The Bureau is seeking feedback on all aspects of its civil 
investigative demand process, including but not limited to:
    1. The Bureau's processes for initiating investigations, including 
12 CFR 1080.4's delegation of authority to initiate investigations to 
the Assistant Director of the Office of Enforcement

[[Page 3687]]

and the Deputy Assistant Directors of the Office of Enforcement;
    2. The Bureau's processes for the issuance of CIDs, including the 
non-delegable authority of the Director, Assistant Director of the 
Office of Enforcement, and the Deputy Assistant Directors of the Office 
of Enforcement to issue CIDs;
    3. Specific steps that the Bureau could take to improve CID 
recipients' understanding of investigations, whether through the 
notification of purpose included in each CID or through other avenues, 
including facilitating a better understanding of the specific types of 
information sought by the CID;
    4. The nature and scope of requests included in Bureau CIDs, 
including whether topics, questions, or requests for written reports 
effectively achieve the Bureau's statutory and regulatory objectives, 
while minimizing burdens, consistent with applicable law, and the 
extent to which the meet and confer process helps achieve these 
objectives;
    5. The timeframes associated with each step of the Bureau's CID 
process, including return dates, and the specific timeframes for 
meeting and conferring, and petitioning to modify or set aside a CID;
    6. The Bureau's taking of testimony from an entity, including 
whether 12 CFR 1080.6(a)(4)(ii), and/or the Bureau's processes should 
be modified to make expressly clear that the standards applicable to 
Federal Rule of Civil Procedure 30(b)(6) also apply to the Bureau's 
taking of testimony from an entity;
    7. The Bureau's processes for handling the inadvertent production 
of privileged information, including whether 12 CFR 1080.8(c) and/or 
the Bureau's processes should be modified in order to make expressly 
clear that the standards applicable to Federal Rule of Evidence 502 
also apply to documents inadvertently produced in response to a CID;
    8. The rights afforded to witnesses by 12 CFR 1080.9, including 
limitations on the role of counsel described in 12 CFR 1080.9(b) in 
light of the statutory delineation of objections set forth in 12 U.S.C. 
5562(c)(13)(D)(iii);
    9. The Bureau's processes concerning meeting and conferring with 
recipients of CIDs, including, for example, negotiations regarding 
modifications and the delegation of authority to the Assistant Director 
of the Office of Enforcement and Deputy Assistant Directors of the 
Office of Enforcement to negotiate and approve the terms of 
satisfactory compliance with civil investigative demands and extending 
the time for compliance;
    10. The Bureau's requirements for responding to CIDs, including 
certification requirements, and the Bureau's CID document submission 
standards; and
    11. The Bureau's processes concerning CID recipients' petitions to 
modify or set aside Bureau CIDs, including:
    a. Whether it is appropriate for Bureau investigators to provide 
the Director with a statement setting out a response to the petition 
without serving that response on the petitioner;
    b. Whether petitions and the Director's orders should be made 
public, consistent with applicable laws; and
    c. The costs and benefits of the petition to modify or set aside 
process, vis-[agrave]-vis direct adjudication in Federal court, in 
light of the statutory requirement for the petition process and the 
fact that CIDs are not self-enforcing.

    Authority:  12 U.S.C. 5511(c).

    Dated: January 18, 2018.
Mick Mulvaney,
Acting Director, Bureau of Consumer Financial Protection.
[FR Doc. 2018-01435 Filed 1-25-18; 8:45 am]
 BILLING CODE 4810-AM-P
Federal Register / Vol. 83, No. 18 / Friday, January 26, 2018 / Notices 3687

and the Deputy Assistant Directors of investigative demands and extending Perimeter Road, Suite 3700, Joint Base
the Office of Enforcement; the time for compliance; Andrews NAF, MD 20762–7002.
2. The Bureau’s processes for the 10. The Bureau’s requirements for FOR FURTHER INFORMATION CONTACT: Mr.
issuance of CIDs, including the non- responding to CIDs, including Thomas R. Uiselt, Deputy Executive
delegable authority of the Director, certification requirements, and the Secretary, DoD C/MSRB, at 240–612–
Assistant Director of the Office of Bureau’s CID document submission 5409, thomas.r.uiselt.civ@mail.mil.
Enforcement, and the Deputy Assistant standards; and Copies of documents or other materials
Directors of the Office of Enforcement to 11. The Bureau’s processes submitted cannot be returned.
issue CIDs; concerning CID recipients’ petitions to
3. Specific steps that the Bureau could modify or set aside Bureau CIDs, Henry Williams,
take to improve CID recipients’ including: Acting Air Force Federal Register Liaison
understanding of investigations, a. Whether it is appropriate for Officer.
whether through the notification of Bureau investigators to provide the [FR Doc. 2018–01308 Filed 1–25–18; 8:45 am]
purpose included in each CID or Director with a statement setting out a BILLING CODE 5001–10–P
through other avenues, including response to the petition without serving
facilitating a better understanding of the that response on the petitioner;
specific types of information sought by b. Whether petitions and the DEPARTMENT OF DEFENSE
the CID; Director’s orders should be made public,
Defense Acquisition Regulations
4. The nature and scope of requests consistent with applicable laws; and
System
included in Bureau CIDs, including c. The costs and benefits of the
whether topics, questions, or requests petition to modify or set aside process, [Docket Number DARS–2016–0033; OMB
for written reports effectively achieve vis-à-vis direct adjudication in Federal Control Number 0704–0332]
the Bureau’s statutory and regulatory court, in light of the statutory
requirement for the petition process and Submission for OMB Review;
objectives, while minimizing burdens,
the fact that CIDs are not self-enforcing. Comment Request
consistent with applicable law, and the
extent to which the meet and confer Authority: 12 U.S.C. 5511(c). AGENCY: Defense Acquisition
process helps achieve these objectives; Regulations System, Department of
Dated: January 18, 2018.
5. The timeframes associated with Defense (DoD).
Mick Mulvaney,
each step of the Bureau’s CID process, ACTION: Notice.
including return dates, and the specific Acting Director, Bureau of Consumer
Financial Protection. SUMMARY: The Defense Acquisition
timeframes for meeting and conferring,
and petitioning to modify or set aside a [FR Doc. 2018–01435 Filed 1–25–18; 8:45 am] Regulations System has submitted to
CID; BILLING CODE 4810–AM–P OMB for clearance, the following
6. The Bureau’s taking of testimony proposal for collection of information
from an entity, including whether 12 under the provisions of the Paperwork
CFR 1080.6(a)(4)(ii), and/or the Bureau’s DEPARTMENT OF DEFENSE Reduction Act.
processes should be modified to make DATES: Consideration will be given to all
expressly clear that the standards Department of the Air Force comments received by February 26,
applicable to Federal Rule of Civil 2018.
Acceptance of Group Application
Procedure 30(b)(6) also apply to the SUPPLEMENTARY INFORMATION:
Under Public Law and Department of
Bureau’s taking of testimony from an Title and OMB Number: Defense
Defense Directive
entity; Federal Acquisition Regulation
7. The Bureau’s processes for AGENCY: Department of the Air Force, Supplement (DFARS) Appendix I, DoD
handling the inadvertent production of DoD Civilian/Military Service Review Pilot Mentor-Protege Program; OMB
privileged information, including Board, DoD. Control Number 0704–0332.
whether 12 CFR 1080.8(c) and/or the ACTION: Notice. Affected Public: Businesses or other
Bureau’s processes should be modified for-profit and not-for-profit institutions.
in order to make expressly clear that the Under the provisions of Section 401, Respondent’s Obligation: Required to
standards applicable to Federal Rule of Public Law 95–202 and DoD Directive obtain or retain benefits.
Evidence 502 also apply to documents 100.20, the Department of Defense Type of Request: Revision of a
inadvertently produced in response to a Civilian/Military Service Review Board currently approved collection.
CID; has accepted an application on behalf of Reporting Frequency: On occasion.
8. The rights afforded to witnesses by a group known as ‘‘Department of the Number of Respondents: 127.
12 CFR 1080.9, including limitations on Navy (DON) Civilian Special Agents Responses per Respondent: 2,
the role of counsel described in 12 CFR who Served in Direct Support and approximately.
1080.9(b) in light of the statutory Under Control of the DON within the Annual Responses: 255.
delineation of objections set forth in 12 Republic of Vietnam During the Period Average Burden per Response: 2.3
U.S.C. 5562(c)(13)(D)(iii); January 9, 1962 through May 7, 1975 hours, approximately.
9. The Bureau’s processes concerning (Vietnam War).’’ Persons with Annual Burden Hours: 595.
meeting and conferring with recipients information or documentation pertinent Needs and Uses: DoD needs this
of CIDs, including, for example, to the determination of whether service information to ensure that participants
daltland on DSKBBV9HB2PROD with NOTICES

negotiations regarding modifications of this group should be considered in the Mentor-Protege Program (‘‘the
and the delegation of authority to the active military service to the Armed Program’’) are fulfilling their obligations
Assistant Director of the Office of Forces of the United States are under the mentor-protege agreements
Enforcement and Deputy Assistant encouraged to submit such information and that the Government is receiving
Directors of the Office of Enforcement to or documentation within 60 days to the value for the benefits it provides
negotiate and approve the terms of DoD Civilian/Military Service Review through the Program. DoD uses the
satisfactory compliance with civil Board (DoD C/MSRB), 1500 West information as source data for reports to

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Document Created: 2018-10-26 10:05:51
Document Modified: 2018-10-26 10:05:51
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice and request for information.
Dates		Comments must be received by March 27, 2018.
Contact		For general inquiries and submission process questions, please call Monica Jackson at (202) 435-7275.
FR Citation		83 FR 3686