The Consumer Financial Protection Bureau will begin a process that allows businesses operating under a Consent Order with the agency to apply for early termination of the order, agency officials said Monday.
Consent orders are negotiated settlement between the CFPB and a business it has cited for violations of consumer rules. They normally last five years. They specify the bureau’s findings and generally impose injunctive relief and financial penalties and are negotiated between the bureau and the business involved.
The bureau said that for an order to be terminated early, the business must be able to demonstrate that it has fully complied with the terms of the order and that it has an effective compliance program that will eliminate the possibility of future violations.
In its announcement, published in the Federal Register, the CFPB said that in some cases, the reporting and record-keeping requirements imposed by the bureau may be costly. In addition, the orders may have an impact on the ability of a depository institution, such as a credit union, to open new branches or merge with another institution.
The bureau said that only businesses may apply for early terminations; individuals cited by the bureau are not eligible. In addition, the settlement does not apply to settlements approved and ordered by a court.
The bureau said it generally will complete a compliance review within six months of receiving a request for early termination.