In the fourth edition of The General Counsel's Guide to Government Investigations, Alexandra Megaris, Ellen Berge, Jonathan Pompan, and Brandon Wong co-authored “Initiation of CFPB Investigations.” The following is an excerpt:
The Dodd-Frank Wall Street Reform and Consumer Financial Protection Act of 2010 (CFPA) gives the Consumer Financial Protection Bureau (CFPB or “the Bureau”) “significant discretion to determine whether and when to open an investigation.” The CFPB has the authority to investigate any potential violation of federal consumer financial law within its jurisdiction, which includes a prohibition against unfair, deceptive, and abusive acts or practices, as well as 19 enumerated consumer protection statutes. The CFPB has concluded that “the public benefits from a process whereby the Bureau can open and close investigations efficiently.” That said, the CFPB regulations limit the ability to open and close investigations to senior staff, namely the Assistant Director and Deputy Assistant Directors of the Office of Enforcement.