CFPB seeks comment on how it investigates firms

The Consumer Financial Protection Bureau is seeking comment on its process for investigating companies that face possible enforcement actions as part of a comprehensive review of the agency.

Acting CFPB Director Mick Mulvaney launched a public review last week of all of the CFPB's processes, starting with how it handles so-called civil investigative demands, which are issued to companies during enforcement investigations. The agency published a request for information on the CID process in the Federal Register on Wednesday.

Mulvaney is trying to identify if any changes are needed to the process of investigating supervised entities. He wants to align the CFPB's process with that of other agencies while minimizing costs to companies.

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"Responding to a CID can impose burdens on the recipients," the agency said. "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."

Supervised entities that receive so-called CIDs are required to comply as they would to a subpoena, by providing written answers, documents, reports and testimony. The CFPB uses the information to investigate potential violations.

The comment period is open for 60 days.