CUNA letter to CFPB on CID changes to protect CUs

WASHINGTON, DC (April 27, 2018) — The Credit Union National Association offered comments in a letter responding to the Bureau of Consumer Financial Protection’s (CFPB) Request for Information (RFI) on the Civil Investigative Demands process. The request is the first in the series of RFIs the bureau issues to assess how it is performing its basic functions.

The bureau investigates potential violations by issuing CIDs and compelling testimony at investigative hearings. A CID permits the Bureau to demand production of documents, written responses and oral testimony, among other things.

“CUNA recognizes that aggressive use of CIDs may be necessary to investigate activities of profit-driven financial institutions and individuals that are engaging in fraud or other serious violations,” the letter reads. “However, credit unions genuinely wish to meet or exceed regulatory requirements designed to protect consumers and will cooperate with reasonable bureau inquiries. Current bureau CID processes do not have policies or procedures that protect legitimate financial institutions, such as credit unions, from unwarranted government intrusion.”

CUNA also noted:

  • While it is reasonable to require that a CID recipient contact CFPB investigators within 10 days of receiving a CID, institutions cannot meaningfully meet and confer about the CID’s specific requests within 10 days. This leads to inefficiency in the investigations and waste of resources;
  • CID statements of basis and purpose of investigations can be improved by requiring the CID to:
    • Identify the institutional product lines under review;
    • Specify applicable enumerated statutes;
    • Articulate the specific conduct under investigation–particularly when the Bureau is relying upon theories of unfair, deceptive, or abusive acts or practices;
    • Specify when substantially-assisting the violations of another covered person is at issue; and
    • Specify when the Bureau is investigating as to whether an individual director or officer may be personally liable for violations.
  • Neither the meet and confer process, nor the Petition to Modify or Set Aside processes provide CID recipients a meaningful opportunity to challenge administratively a CID that:
    • Exceeds Bureau jurisdiction; Asks for information that is irrelevant to the violations investigated; or
    • Seeks information that is indefinite.
  • The bureau deprives CID recipients of due process when it makes public CID recipients’ Petitions to Modify or Set Aside a CID.

About CUNA

Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 135 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit To find your nearest credit union, visit


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