Since its inception, the Consumer Financial Protection Bureau (“CFPB”) has had concurrent responsibility with the Federal Trade Commission (“FTC”) in regulating the activities of nondepository institutions as they apply to consumer financial products or services. Last week, the CFPB and FTC executed a Memorandum of Understanding (“MOU”) that provides a mechanism to “prevent duplication of efforts, provide consistency and ensure a vibrant marketplace for consumer financial products or services.” The MOU, which lasts for 3 years, generally outlines the agencies’ responsibilities towards each other in terms of coordination, consultation, and notice. It is unclear, however, whether such cooperation will result in more or less aggressive rulemaking, supervision, orenforcement actions overall.
In general, the MOU calls for the agencies to meet at regular intervals to discuss, among other things, future law enforcement activities, CFPB’s plans to examine entities under its jurisdiction and the results of any such examinations, making recommendations to amend consumer financial laws, the creation of task forces, and the efficacy and consistency of the remedies that the agencies have obtained. Additionally, the agencies are to:
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