[Federal Register Volume 87, Number 114 (Tuesday, June 14, 2022)]
[Rules and Regulations]
[Pages 35868-35869]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-12727]


-----------------------------------------------------------------------

BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Chapter X


Consumer Financial Protection Circular 2022-01: System of 
Consumer Financial Protection Circulars to Agencies Enforcing Federal 
Consumer Financial Law

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Consumer financial protection circular.

-----------------------------------------------------------------------

SUMMARY: The Consumer Financial Protection Bureau (Bureau or CFPB) has 
issued Consumer Financial Protection Circular 2022-01, titled, ``System 
of Consumer Financial Protection Circulars to Agencies Enforcing 
Federal Consumer Financial Law.'' In this circular, the Bureau outlines 
its efforts to promote consistency among enforcers and fair competition 
in the market by launching a new system to provide guidance to other 
agencies with consumer financial protection responsibilities on how the 
CFPB intends to enforce Federal consumer financial law.

DATES: The Bureau released this circular on its website on May 16, 
2022.

ADDRESSES: Enforcers, and the broader public, can provide feedback and 
comments to [email protected].

FOR FURTHER INFORMATION CONTACT: Brian Shearer, Senior Advisor, Office 
of the Director; Brad Lipton, Senior Counsel, Legal Division, at (202) 
435-7700. If you require this document in an alternative electronic 
format, please contact [email protected].

SUPPLEMENTARY INFORMATION: The CFPB will issue Consumer Financial 
Protection Circulars to the broad set of government agencies 
responsible for enforcing Federal consumer financial law.
    The CFPB is the principal Federal regulator responsible for 
administering the Federal consumer financial laws, see 12 U.S.C. 5511, 
including the Consumer Financial Protection Act's prohibition on 
unfair, deceptive, and abusive acts or practices,\1\ and eighteen other 
``enumerated consumer laws.'' \2\ However, the CFPB is not the only 
enforcer of these laws; enforcement responsibility is spread among a 
large set of State and Federal government agencies. This includes, most 
notably, State attorneys general and State regulators \3\ and 
prudential regulators such as the Federal Deposit Insurance 
Corporation, the Office of the Comptroller of the Currency, the Board 
of Governors of the Federal Reserve System, and the National Credit 
Union Administration.\4\ Some Federal consumer financial laws are also 
enforceable by other Federal agencies, including the Department of 
Justice, the Federal Trade Commission, the Farm Credit Administration, 
the Department of Transportation, and the Department of Agriculture. In 
addition, some of these laws provide for private enforcement.
---------------------------------------------------------------------------

    \1\ 12 U.S.C. 5536(a)(1)(B).
    \2\ 12 U.S.C. 5481(12).
    \3\ 12 U.S.C. 5552.
    \4\ See, e.g., 12 U.S.C. 5516(d), 5581(c)(2).
---------------------------------------------------------------------------

    Given the broad variety of agencies responsible for enforcing 
Federal consumer financial law, there is a risk that companies might 
encounter inconsistent enforcement strategies and approaches. One of 
the CFPB's five statutory objectives is to ensure Federal consumer 
financial law is enforced consistently regardless of the status of a 
person as a chartered bank or nonbank.\5\ Many entities are subject to 
the jurisdiction of multiple agencies, and to maintain certainty of 
expectations for those companies with multiple regulators, it is 
important for State and Federal government agencies to consistently 
enforce the laws that the CFPB administers. Consistency is also 
imperative to creating a level playing field between companies that 
compete in the same market but are subject to the jurisdiction of 
different enforcers and Consumer Financial Protection Circulars will 
provide transparency to partner agencies regarding the CFPB's intended 
approach when cooperating in enforcement actions.
---------------------------------------------------------------------------

    \5\ 12 U.S.C. 5511(b)(4).
---------------------------------------------------------------------------

    As described more fully below, Consumer Financial Protection 
Circulars will be policy statements under the Administrative Procedure 
Act and will be released publicly to increase transparency for the 
benefit of the public and regulated entities. Consumer Financial 
Protection Circulars will provide background information about 
applicable law, articulate considerations relevant to the CFPB's 
exercise of its authorities and advise other parties with authority to 
enforce Federal consumer financial law. The Director of the CFPB will 
authorize issuance of each Consumer Financial Protection Circular, and 
the CFPB will publish them on its website and in the Federal Register.
    The CFPB is beginning to identify a number of issues that would 
benefit from clear and consistent enforcement, and the CFPB intends to 
issue new Consumer Financial Protection Circulars to advance these 
goals. The

[[Page 35869]]

CFPB strongly encourages enforcers of Federal consumer financial law to 
contact the CFPB with suggestions for new Consumer Financial Protection 
Circulars. The CFPB is also interested in receiving feedback on any 
Consumer Financial Protection Circulars it issues. Enforcers, and the 
broader public, can also provide feedback and comments to 
[email protected].

About Consumer Financial Protection Circulars

    Consumer Financial Protection Circulars are issued to all parties 
with authority to enforce Federal consumer financial law. The CFPB is 
the principal Federal regulator responsible for administering Federal 
consumer financial law, see 12 U.S.C. 5511, including the Consumer 
Financial Protection Act's prohibition on unfair, deceptive, and 
abusive acts or practices, 12 U.S.C. 5536(a)(1)(B), and 18 other 
``enumerated consumer laws,'' 12 U.S.C. 5481(12). However, these laws 
are also enforced by State attorneys general and State regulators, 12 
U.S.C. 5552, and prudential regulators including the Federal Deposit 
Insurance Corporation, the Office of the Comptroller of the Currency, 
the Board of Governors of the Federal Reserve System, and the National 
Credit Union Administration. See, e.g., 12 U.S.C. 5516(d), 5581(c)(2) 
(exclusive enforcement authority for banks and credit unions with $10 
billion or less in assets). Some Federal consumer financial laws are 
also enforceable by other Federal agencies, including the Department of 
Justice and the Federal Trade Commission, the Farm Credit 
Administration, the Department of Transportation, and the Department of 
Agriculture. In addition, some of these laws provide for private 
enforcement.
    Consumer Financial Protection Circulars are intended to promote 
consistency in approach across the various enforcement agencies and 
parties, pursuant to the CFPB's statutory objective to ensure Federal 
consumer financial law is enforced consistently. 12 U.S.C. 5511(b)(4).
    Consumer Financial Protection Circulars are also intended to 
provide transparency to partner agencies regarding the CFPB's intended 
approach when cooperating in enforcement actions. See, e.g., 12 U.S.C. 
5552(b) (consultation with CFPB by State attorneys general and 
regulators); 12 U.S.C. 5562(a) (joint investigatory work between CFPB 
and other agencies).
    Consumer Financial Protection Circulars are general statements of 
policy under the Administrative Procedure Act. 5 U.S.C. 553(b). They 
provide background information about applicable law, articulate 
considerations relevant to the Bureau's exercise of its authorities, 
and, in the interest of maintaining consistency, advise other parties 
with authority to enforce Federal consumer financial law. They do not 
restrict the Bureau's exercise of its authorities, impose any legal 
requirements on external parties, or create or confer any rights on 
external parties that could be enforceable in any administrative or 
civil proceeding. The CFPB Director is instructing CFPB staff as 
described herein, and the CFPB will then make final decisions on 
individual matters based on an assessment of the factual record, 
applicable law, and factors relevant to prosecutorial discretion.

Rohit Chopra,
Director, Consumer Financial Protection Bureau.
[FR Doc. 2022-12727 Filed 6-13-22; 8:45 am]
BILLING CODE 4810-AM-P