The Consumer Financial Protection Bureau (CFPB) recently released an Advisory Opinion offering guidance on Section 1034(c) of the Consumer Financial Protection Act (CFPA). This section generally requires large banks and credit unions—those with over $10 billion in assets—to timely comply with consumer requests for information. This also includes supporting written documentation related to their accounts for financial products and services. According to the findings by Weiner Brodsky Kider PC at JD Supra.
Interestingly, the CFPB noted in the Advisory Opinion that it does not intend to pursue monetary relief for potential violations of Section 1034(c). While the practical and legal implications of this stance remain to be seen, clarity around procedures concerning consumer information requests is crucial for corporate legal professionals in the banking and credit union sectors.
Financial firms affected by these guidelines should familiarize themselves with the nuances of the Advisory Opinion and the related implications for their portfolio. The Advisory Opinion highlights the importance of timely responses to consumer inquiries according to the existing statutory timeline. Firms falling short of the mark may be subject to regulatory measures, even if monetary penalties are off the table.
Nonetheless, the new guidance does reinforce the central mission of the CFPB: to protect consumers in the financial marketplace. However, a noteworthy aspect is the policy decision not to levy monetary fines on entities potentially violating Section 1034(c), which signals a different viewpoint to sanctions on non-compliance.