CFPB Doubles Efforts to Clear Backlog of Investigations
The Consumer Financial Protection Bureau has put a temporary stop on all new investigations coming into the bureau in an effort to clear the existing backlog. The organization currently has unresolved cases that date back over three years.
The CFPB overstretched itself, and now they are doubling their efforts to get back on track. Cases more than two years old, which is the standard time frame the bureau allots for the resolution of a case, will take precedence in the new efforts.
A former CFPB employee told American Banker, “They took on too much in the beginning and it became difficult to get through those investigations in a reasonable amount of time. They overestimated what the staff was capable of handling.”
There are several factors that may put a case on hold, including business mergers, outstanding legal investigations and reports to Congress. Combine this with the upsurge of data breaches in 2014, and it is easy to see why the CFPB is in over their heads.
Sam Gilford, a CFPB spokesman, said that the reason for the slowdown was not due to the number of cases remaining, but rather the number of unresolved cases still lingering from when the agency was first formed in 2011.
“Because we have transitioned out of that initial start-up phase, we are necessarily opening new investigations at a slower pace than we did during our first couple of years. We are also resolving more matters–completing the early, inherited work allows for more strategic and impactful decisions about what cases to pursue.”