CFPB Offers Potential Benefits If You Turn Yourself In, But Make Sure You Understand Your Options

CFPB Offers Potential Benefits If You Turn Yourself In, But Make Sure You Understand Your Options

Aug 07, 2013

Article

Brownstein Client Alert, August 7, 2013

Brownstein Hyatt Farber Schreck’s past Client Alerts have warned that the Consumer Financial Protection Bureau’s reach touches virtually every company that has any interaction with consumers. A recent Bulletin issued by the CFPB does nothing to cede any of this power, but does offer advice to companies on how they can potentially make things easier for themselves if they are confronted with a potentially troubling situation that merits CFPB intervention.

According to the Bulletin, a company’s self-policing, self-reporting, remediation and cooperation will be taken into account as part of the CFPB’s exercise of its enforcement discretion. These items are in addition to the other factors that the CFPB considers, including (1) the nature, extent, and severity of the violations identified; (2) the actual or potential harm for those violations; (3) whether there is a history of past violations; and (4) a party’s effectiveness in addressing the violations.

Cooperation is not a cure-all. Even if a company has self-policed, self-reported, remediated and cooperated, the CFPB still reserves the rights to subject the company to any fines and penalties it deems appropriate.

Click the PDF link above to read the full client alert.

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