In September 2013, the Consumer Financial Protection Bureau (CFPB) published an interim final rule that established procedures for issuing temporary cease and desist orders. On June 16, the bureau adopted the interim rule without change. The regulation takes effect on July 28.
The bureau indicated that it received one comment letter on the interim final rule, and the letter did not contain specific suggestions pertaining to the rule.
Section 1053(c) of the Dodd-Frank Act required the CFPB to prescribe rules establishing procedures for the conduct of adjudication proceedings.
The bureau is authorized under the act to issue temporary cease and desist orders against a person who is subject to a notice of charges if: 1) the alleged violation is likely to cause the person to be insolvent or otherwise prejudice the interests of consumers before the completion of the proceedings; or 2) the person’s books and records are so incomplete that the bureau is unable to determine the financial condition of the person.
A temporary order can require the person to cease and desist from any violation or practice or take affirmative action to correct practices or records. The order is appealable in federal district court within 10 days.
Read the CFPB’s Federal Register notice for more information.
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