The interim rule went into effect today, July 28, 2011, regarding the process by which state officials are to notify the CFPB of actions or proceedings undertaken to enforce any requirements of the Consumer Financial Protection Act ("CFPA").
State officials are required prior to initiating any action or proceeding in any court or other administrative or regulatory proceeding against any covered person o enforce any provision of the CFPA or any regulation prescribed thereunder, including but not limited to the filing of a complaint, motion for relief, or other document which initiates an action or proceeding. The notice must contain a written description of the anticipated action or proceeding, including, the court or body in which the action is to be initiated; the identify of the parties to the action or proceedings; the nature of the action or proceeding to be initiated; the anticipated date of initiating the action or proceeding; the alleged facts underlying the action or proceedings; a contact name; and a determination as to whether there may be a need to coordinate the prosecution of the action or proceeding so as not to interfere with the action. The state must include a complete and unredacted copy of any complaint motion for relief, or similar document that is the subject of the notice.
The Bureau may (1) intervene in the action or proceeding as a party; (2) upon intervening remove the action to the appropriate federal court; and be heard on all matters arising in the action; (3) appeal any order or judgment, to the same extent as any other party in the proceedings may; and (4) otherwise participate in the action as appropriate.
Unless and until such information because publicly available, the substance and fact of the notice, including the complaint, motion for relief, or other documents, shall not be disclosed by the Bureaus or any relevant prudential regulator who received the notice.
There is no private right of action or defense based upon the failure to properly notify the Bureaus of an action.