Joint Comments on the Proposal to Rescind Rules of Practice for Adjudication Proceedings

To Whom It May Concern:

The U.S. Chamber of Commerce, the American Bankers Association, the Bank Policy Institute, and the Consumer Bankers Association (the "Associations") appreciate the opportunity to comment on the Consumer Financial Protection Bureau' ("CFPB") Proposed Rulemaking on Rules of Practice for Adjudication Proceedings; Rescission ("the proposal" or "the rescission").

The CFPB proposes to rescind in full the amendments to its Rules of Practice for Adjudication Proceedings adopted on February 22, 2022 and on March 29, 2023 ("the amendments"). As noted in the proposal, the amendments expanded the opportunities for litigation parties to conduct depositions in adjudication proceedings and made amendments concerning timing and deadlines, the content of answers, the scheduling conference, bifurcation of proceedings, the process for deciding dispositive motions, and requirements for issue exhaustion, as well as other technical changes.

The CFPB proposes to rescind the amendments particularly due to concerns with the provisions that transferred authority to decide dispositive motions from the hearing officer presiding over the proceeding to the Director of the CFPB. In addition, the CFPB noted that commenters criticized the amendment for "concentrating authority in the Director at the expense of the hearing officer." The CFPB further stated it is considering rescinding the remainder of the amendments because the changes were unnecessary. The CFPB has requested comments on the proposal.

The Associations strongly support the proposal to rescind the amendments. In response to the CFPB's request for comment on the amendments proposed in 2022, the trade groups previously sent the CFPB a letter commenting on the amendments on April 8, 2022, attached here as Appendix A. In that letter, the trade groups strongly objected to the amendments and requested that the CFPB rescind the amendments and revert to the prior rules for adjudication. In response to this proposal, we write to reaffirm our position that the amendments should be rescinded and express support for the CFPB's proposal to rescind the amendments. The Associations requests the CFPB consider its comments both in this letter and in Appendix A.

We accordingly write to make the following points in support of the CFPB's proposal:

• The amendments concentrate adjudicative authority in the Director, creating legal uncertainty and instability.
• The amendments risk depriving defendants of due process.
• Meaningful access to Article III courts is critical to sound and fair adjudication of enforcement actions.
• Recent legal precedent supports the proposal to rescind the amendments.
• Additional amendments would improve the CFPB's adjudication process.

Download the joint comment letter to read the full text.