November 02, 2012

Law360 quotes Jonathan Pompan on CFPB's new appeals process

1 min

Law360 quoted Venable of counsel Jonathan Pompan in an article on November 1, 2012 on the Consumer Financial Protection Bureau's (CFPB) new appeals process, which it announced on Wednesday. Industry attorneys are concerned about the objectivity of the bureau's new appeals process.

Pompan stated that "At the end of the day, all of the staff still answer to the same one individual." This is in reference to the CFPB's director, Richard Cordray, who makes the final decision on taking enforcement actions. Pompan said "What incentives do members of the committee have to disagree with their colleagues?"

He suggested that "Given how aggressive the CFPB has already been up to this point, the appeals process could determine whether a company will face an enforcement action." Pompan added that "The final outcome here is either a confidential examination report or a potential enforcement action. In other agencies, the decision to bring an enforcement action is decided upon by more than one person." He concluded, saying "The results of nonbank supervision and investigation have yet to be seen, and in the coming weeks and months the expectation is there’s going to be a lot more."