The Consumer Financial Protection Bureau on Monday pledged to provide targets of enforcement actions with advance notice of potential violations of consumer protection laws.
Raj Date, special advisor to the secretary of the Treasury for the CFPB, noted that other federal agencies use advance warnings, which allows recipients to submit a written response within 14 days.
“The early warning notice strikes a balance between the goal of fairness to those being investigated and our mission to protect consumers,” Date said. “This process will help us fulfill our commitment to transparency in enforcing the law.”
An early warning notice is not required by law and is discretionary. In some cases, advance warning may not be "appropriate," the bureau said if immediate action is needed to stop on-going fraud quickly.
