The Consumer Financial Protection Bureau and Federal Trade Commission announced Monday that they have agreed to coordinate their regulatory efforts toward consumer protection and avoid doubling up on enforcement.
The two agencies, which both hold authority under the Dodd-Frank Act, share some of that responsibility and are tasked with keeping a consistent watch with an eye toward duplication of enforcement.
“Entering this agreement with the FTC is important to making sure markets for consumer financial products are getting efficient and effective federal government oversight,” said Richard Cordray, Director of the CFPB, in a written statement. “We are both motivated by the same thing: To do right by consumers. We look forward to this partnership.”
A formal Memorandum of Understanding specifies the tasks of the CFPB and the FTC, including specifics of two mortgage rules: the Mortgage Assistance Relief Services Rule and Mortgage Acts and Practices – Advertising Rule noting it will work together to avoid duplication of enforcement.
The agencies state in the agreement they will meet regularly to coordinate upcoming law enforcement, rulemaking, and other activities; will communicate prior to initiating an investigation or bringing an enforcement action; consult on rulemaking and guidance initiatives; and cooperate on consumer education efforts to promote consistency of messages and maximum use of resources.
“The FTC has always been committed to protecting consumers and legitimate companies from bad actors in the financial marketplace,” said Jon Leibowitz, Chairman of the FTC. “Now we have another cop on the beat, and this agreement ensures that businesses will not be double-teamed by the two agencies.”
The agencies are seeking public feedback on the agreement. View the Memorandum of Understanding here.
Written by Elizabeth Ecker