Today, the American Financial Services Association (AFSA) expressed support for a bipartisan bill aimed at reforming the civil investigative demand (CID) process at the Consumer Financial Protection Bureau (CFPB). Representatives Andy Barr (R-KY) and Vicente Gonzalez (D-TX) received a letter from AFSA endorsing HR 1653, also known as the "Civil Investigative Demand Reform Act."
AFSA's letter highlights misuses of the CFPB's investigative authority under a previous director, citing burdensome examinations imposed on financial institutions. These investigations reportedly began with unclear demands and imposed demanding deadlines, which often diverted resources from consumer services.
The proposed legislation seeks to increase clarity and transparency in the CFPB's process for investigating institutions that offer essential credit services in their communities. AFSA acknowledged the efforts of the bill's sponsors, including Representatives William Timmons (R-SC) and Jared Moskowitz (D-FL).
April 16, 2025