CFPB’s Settlement Regarding the 2019 Taskforce on Federal Consumer Financial Law

Consumer Financial Protection Bureau

WASHINGTON, D.C. — On Friday, the Consumer Financial Protection Bureau (CFPB) announced it settled a lawsuit filed by the National Association of Consumer Advocates, U.S. Public Interest Research Group, and Professor Kathleen Engel. The lawsuit alleged that the Taskforce on Federal Consumer Financial Law did not comply with the Federal Advisory Committee Act (FACA).

FACA is a “sunshine” law that seeks to ensure that there is adequate transparency into agency advisory committees. When enacting FACA in 1972, Congress was concerned that special interest groups might use their committee membership to advance their private financial concerns.

In October 2019, the CFPB chartered the Taskforce to provide recommendations to improve consumer financial laws and regulations. On January 5, 2021, the Taskforce released its report and recommendations.

On November 29, 2021, the CFPB entered into a stipulated settlement agreement that required, among other corrective actions, the CFPB to release to the plaintiffs by March 22, 2022, all Taskforce records that would have been made public if the CFPB had complied with FACA’s requirements. These records will also be made publicly available on the CFPB’s website. Additionally, the CFPB has amended the Taskforce’s report to include a disclaimer noting that the CFPB failed to comply with FACA and that the report should not be relied upon as a “product of a FACA-compliant federal advisory committee.”

READ:  CFPB Helps Survivors Mitigate the Financial Consequences of Human Trafficking

In announcing the settlement, the CFPB stated that it expresses its commitment to ensuring compliance with advisory committee sunshine laws. For more information, please visit the CFPB’s webpage on its open government activities.

Thanks for visiting! MyChesCo brings reliable information and resources to Chester County, Pennsylvania. Please consider supporting us in our efforts. Your generous donation will help us continue this work and keep it free of charge. Show your support today by clicking here and becoming a patron.