An entity eager to be relieved of the provisions of a consent order reached with the federal consumer financial protection agency will have a path to do so under a proposal filed by the agency Monday.
In filings with the Federal Register, the Consumer Financial Protection Bureau (CFPB) will publish as early as Tuesday a policy statement that “sets forth a forth a process by which an entity subject to a Consent Order may apply for early termination and articulates the standards that the Bureau intends to use when evaluating early termination applications.”
When published, the effective date of the policy statement will be back-dated to Oct. 8, according to the notice filed with the Register.
The bureau, in its filings, said it believes that “exceptional circumstances” may exist when early termination of a consent order is appropriate. CFPB asserted that can be accomplished in a manner that minimizes the risk of new violations of law or harm to consumers.
However, the statement notes, bureau Director Kathleen Kraninger “intends to retain complete discretion and sole authority to terminate Consent Orders.”
The policy sets the conditions for granting early termination (based on the bureau’s determination only) as an entity meeting all eligibility criteria outlined in the statement, complying with the terms and conditions of the consent order, and achieving a “satisfactory” compliance position in the institutional product line [IPL] or compliance area, such as fair lending) that was the original subject of the consent order.
“When an entity applies for termination, its application should demonstrate that these conditions are satisfied,” the statement reads.