CFPB Announced Introduction of the Early Warning Notice

The CFPB outlined plans to provide advance notice on potential enforcement actions to individuals and firms under investigation. This will allow the subject of an investigation to respond to any potential legal violations before CFPB ultimately decides whether to begin legal action. Raj Date said of the Early Warning Notice:

The Early Warning Notice announced today strikes a balance between the goal of fairness to those being investigated and our mission to protect consumers. This process will help us fulfill our commitment to transparency in enforcing the law.

The CFPB believes the Early Warning Notice will promote fair enforcement of consumer financial laws, although the notice is not required by law. The CFPB notes the decision to give notice will depend on factors such as whether prompt action is needed.

Read full press release.
Read more about the Early Warning Notice.
View sample Early Warning Notice letter.