Navigating an Investigation
The CFPB has a broad grant of jurisdiction over companies that offer or provide consumer financial services or products. This includes, among others, companies that offer or service credit cards, debt collectors, consumer debt, mortgages, as well as banks, consumer reporting agencies, payday lenders and lead generators. Additionally, the CFPB has the authority to hold individuals liable, as well as corporations. The CFPB may also refer any wrongful conduct to the Department of Justice (DOJ) on the part of individuals. Here are a few suggestions on how to address a Civil Investigative Demand (CID) from the CFPB:
We highly recommend you seek out an attorney who has experience with the CFPB to help you make these initial assessments. Not only does such an attorney provide you with important strategic insight, experience and credibility, but bringing in outside counsel also demonstrates to the CFPB that you are taking its requests seriously. According to CFPB Senior Counsel for Enforcement Policy and Strategy Greg Nodler, a panelist at Holland & Knight's Half-Day Seminar on Oct. 6, 2015, the CFPB looks favorably upon companies that take the Bureau's CIDs seriously. The way a company can demonstrate this includes attending the meet and confer in person, having internal IT staff participate in the meet and confer to work out technical details with producing information and being cooperative throughout the life of the investigation.