Companies and others can earn an early way out of actions taken against them through consent orders by the federal consumer financial protection agency under a new policy announced Monday.
In a release, the Consumer Financial Protection Bureau (CFPB) said its new policy on early termination of administrative consent order outlines the process for entities subject to a consent order with the agency and the “standards that the bureau intends to use when evaluating applications.”
“In order for a Consent Order to be terminated early, an entity should demonstrate that it meets certain threshold eligibility criteria, has fully complied with the terms of the Consent Order, and has a satisfactory compliance management system in applicable areas,” the agency stated. “These conditions are designed to minimize the risk of new violations of law by the company and to protect consumers.”
The bureau said an application for early termination should be submitted to the agency point of contact named in the consent order. “In general, an application should demonstrate that the entity has satisfied all of the conditions for granting early termination described in the policy statement,” the agency stated. “Bureau staff will review applications and make recommendations to the Director about whether to terminate a Consent Order. Under the policy, the sole authority to terminate a Consent Order remains with the Bureau’s Director and the termination decision is at their discretion.”
Statement of Policy on Applications for Early Termination of Consent Orders