Petitions to Modify or Set Aside CFPB Civil Investigative Demands (CIDs): Analysis of Recent Decisions

18 minute read | January.29.2013

Since the Consumer Financial Protection Bureau (CFPB or Bureau) came on line in July 2011, it has been aggressively investigating whether financial institutions and service providers, among others, have been engaging in conduct that, if proven, violates a Fed-eral consumer financial law. Among the many tools in the CFPB’s investigative arsenal are civil investigative demands (CIDs).

While the use of CIDs in regulatory investigations is nothing new, the power of CIDs has been brought into focus by two recent CFPB decisions denying petitions to modify or set aside CIDs. These decisions provide guidance for parties assessing whether to chal-lenge the CFPB’s request for documents and responses. In this article, we analyze the reasoning behind these decisions and identify issues that companies must be cognizant of while navigating the investigation and petitioning phases.1