The application must demonstrate that the entity has complied with all terms of the consent order.
A new policy statement on applications for early termination of administrative consent orders has been issued by the Consumer Financial Protection Bureau. According to the Bureau, exceptional circumstances may exist where it is appropriate to terminate a consent order before its original expiration date, which is usually five years. Therefore, the policy statement outlines the early termination application process for entities subject to a consent order and the standards that the Bureau intends to use when evaluating applications.
For a consent order to be terminated early, an entity must demonstrate that it has fully complied with the terms of the consent order and has a satisfactory compliance management system in applicable areas. By complying with these conditions, the CFPB believes that the entity minimizes the risk of new violations of law by the company and continues to protect consumers.
An application for early termination is submitted to the Bureau point-of-contact specified in the consent order. Bureau staff will review applications and make recommendations to the Director about whether to terminate a consent order. Under the policy, the sole authority to terminate a consent order remains with the Bureau’s Director and the termination decision is at his or her discretion.
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