ABA and four other trade groups said in a comment letter that they strongly support the CFPB’s proposed rule intended to codify protections for privileged information that CFPB-regulated financial institutions submit to the bureau.
The proposal would clarify that an institution providing privileged information to the CFPB does not waive any applicable privilege with respect to third parties. It also would clarify that the CFPB’s transfer of privileged information to another federal or state agency does not result in a waiver of any applicable privilege.
The proposal is substantively similar to the privilege-preservation provisions that apply to banks’ submitting such information to the prudential regulators. However, the trade groups urged the CFPB to promote maximum legal certainty by continuing to support a legislative amendment that would provide express statutory protection to institutions subject to the bureau’s supervisory jurisdiction.
ABA strongly supports a House-passed bill (H.R. 4014) and Senate legislation (S. 2099) that would provide such protection. The association has noted that when Congress created the CFPB, it didn’t provide the bureau with the same express statutory protections the other banking agencies were given.
While the CFPB is trying to address the oversight through the regulatory process, there also is broad bipartisan support for removing any uncertainty through legislation.
Read the comment letter.
Read the proposed rule.