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This bill would change how the Consumer Financial Protection Bureau asks people and companies for information during an investigation. It sets a time limit for when the Bureau can issue these demands, requires them to be more specific about what they are asking for, gives lawyers a clearer way to ask questions about the demand, and adds more privacy for challenge requests. It also expands the reasons someone can use to ask that a demand be changed or canceled, and it allows court review if the Bureau denies that request.
- The Bureau would have to issue a demand within 6 years of the alleged violation.
- Demand letters would need to refer to specific facts, instead of being too broad or vague.
- Lawyers for the person receiving the demand could ask questions about how wide the demand is, and the Bureau would have to respond within a set time. The Bureau could also extend deadlines when needed.
- People could ask to set aside a demand for more reasons, including if it breaks legal rules, violates a right or privilege, is too costly or burdensome, is too broad, repeats requests already made, or information can be obtained more easily another way. If the Bureau denies the request, that decision could be reviewed by a court.
Official Summaries
Civil Investigative Demand Reform Act of 2025
This bill revises the Consumer Financial Protection Bureau’s (CFPB’s) civil investigative demand process. The demand process is used to gather information relevant to a violation of consumer financial law before formal proceedings.
Under the bill, such demands must be issued and served no later than six years after the date of the violation. The demand must also provide specific reference to particular facts regarding the violation.
The bill establishes a process that allows an advising attorney to submit questions on behalf of a person compelled by a demand to appear for oral testimony.
The bill also allows for judicial review if the CFPB denies a petition to set aside or modify a demand. These petitions must be treated as confidential.
In addition, the bill expands the grounds on which a petitioner may seek relief from such a demand to include a demonstration that the demand (1) is unduly burdensome, expensive, and outside the scope of the inquiry; (2) is unreasonably cumulative or duplicative; or (3) can be obtained from some other source that is more convenient, less burdensome, or less expensive.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1653 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1653
To reform the civil investigative demand process of the Bureau of
Consumer Financial Protection.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 27, 2025
Mr. Barr (for himself, Mr. Vicente Gonzalez of Texas, and Mr.
Moskowitz) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To reform the civil investigative demand process of the Bureau of
Consumer Financial Protection.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Civil Investigative Demand Reform
Act of 2025''.
SEC. 2. CIVIL INVESTIGATIVE DEMANDS.
(a) Demand Period.--Section 1052(c)(1) of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5562(c)(1)) is amended by inserting
after ``before the institution of any proceedings under the Federal
consumer financial law'' the following: ``, but not later than 6 years
after the date of such violation''.
(b) Demand Requirements.--Section 1052(c)(2) of the Consumer
Financial Protection Act of 2010 (12 U.S.C. 5562(c)(2)) is amended by
inserting after ``conduct'' the following: ``, with specific reference
to particular facts,''.
(c) Attorney Representation.--Section 1052(c)(13)(D) of the
Consumer Financial Protection Act of 2010 (12 U.S.C. 5562(c)(13)(D)) is
amended by adding at the end the following:
``(v) Question and response.--
``(I) Advising attorney.--An
attorney advising a person described in
clause (i) may submit to the Bureau
questions related to the scope or
breadth of the demand.
``(II) Bureau response.--The Bureau
shall submit to the attorney advising a
person described in clause (i) a
response to any question submitted
under subclause (I) during the shorter
of--
``(aa) a period that is 20
days after the date that the
questions are submitted; or
``(bb) a period equal to
the period beginning on the
date of service of the civil
investigative demand and ending
on the return date specified in
the demand.
``(III) Extension of return date
and petition deadline.--In a case in
which questions are submitted under
subclause (I), the Bureau may include
with the response required under
subclause (II) an extension of the
return date and the deadline to file a
petition with the Bureau for an order
modifying or setting aside the
demand.''.
(d) Confidential Treatment of Petitions.--Section 1052(d)) of the
Consumer Financial Protection Act of 2010 (12 U.S.C. 5562(d)) is
amended--
(1) in the subsection heading, by inserting ``and
petitions'' after ``demand material''; and
(2) in paragraph (1), strike ``and tangible things'' and
insert ``, tangible things, and the contents of any petition
submitted to the Bureau in accordance with subsection (f)''.
(e) Specific Grounds To Set Aside.--Section 1052(f)(3) of the
Consumer Financial Protection Act of 2010 (12 U.S.C. 5562(f)(3)) is
amended by striking ``upon any failure'' and all that follows through
the period at the end and inserting the following: ``upon any--
``(A) failure of the demand to comply with the
provisions of this section;
``(B) constitutional or other legal right or
privilege of such person; or
``(C) demonstration that the demand is--
``(i) unduly burdensome, disproportionately
expensive, and outside the scope of the
inquiry; or
``(ii) unreasonably cumulative or
duplicative, or can be obtained from some other
source that is more convenient, less
burdensome, or less expensive.''.
(f) Judicial Review.--Section 1052(f) of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5562(f)) is amended by adding at the
end the following:
``(4) Judicial Review of Petition To Modify or Set Aside a
Demand.--In the case that the Bureau denies a petition to modify or set
aside a demand, such denial shall be subject to judicial review.''.
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