Source: https://www.federalregister.gov/documents/2011/07/28/2011-19038/disclosure-of-records-and-information
Timestamp: 2017-10-21 18:28:38
Document Index: 711073571

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45371-45394 (24 pages)
https://www.federalregister.gov/d/2011-19038 https://www.federalregister.gov/d/2011-19038
Start Preamble Start Printed Page 45372
On July 21, 2010, the President signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203). Title X of that law is the Consumer Financial Protection Act of 2010 (the “Act”), which created the Bureau of Consumer Financial Protection (the “CFPB”). Pursuant to the provisions of the Act, the CFPB will begin to exercise its authority to regulate the offering and provision of consumer financial products and services under the federal consumer financial laws on July 21, 2011.[1]
Section 1070.2(h) defines “confidential investigative information” to include all manner of materials received, generated, or compiled by the CFPB in the course of its investigative activities, including materials received Start Printed Page 45373through the issuance of civil investigative demands. It also includes confidential supervisory information and confidential consumer complaint information to the extent that such materials serve as a basis for or are utilized for purposes of, an investigation. Lastly, the term includes materials that other federal and state agencies provide to the CFPB or create for its use in investigating a possible violation of federal consumer financial law.
Subpart D of the rules pertains to the protection and disclosure of confidential information that the CFPB generates and receives during the course of its work. Various provisions of the Act require the CFPB to promulgate regulations providing for the confidentiality of certain types of information and to protect such information from public disclosure. Other provisions of the Act, however, require or authorize the CFPB to share information, under certain circumstances, with other federal and state agencies to the extent that they share jurisdiction with the CFPB as to the supervision of financial institutions, the enforcement of consumer financial protection laws, or the investigation and resolution of consumer complaints Start Printed Page 45374regarding financial institutions or consumer financial products and services. In implementing these provisions, the CFPB has sought to provide the maximum protection for confidential information, while ensuring its ability to share or disclose information to the extent necessary to achieve its mission.
Section 1070.43(a)(2) implements section 1013(b)(3)(D) of the Act, which requires the CFPB to share confidential consumer complaint information with federal and state agencies, provided that the agency first gives written assurance to the CFPB that it will maintain such information in a manner that conforms to the standards that apply to federal agencies for the protection of the Start Printed Page 45375confidentiality of personally identifiable information and for data security and integrity.
Section 1070.47(c) clarifies that disclosures of confidential information pursuant to subpart D are not intended and should not be construed to constitute a waiver of any privileges that are otherwise available to the CFPB or Start Printed Page 45376to any agency or person with respect to this confidential information.
The CFPB has conducted an analysis of benefits, costs, and impacts [2] and consulted with appropriate Federal agencies. In developing the interim final rule, the CFPB considered potential benefits and costs to consumers and covered persons, including the impact on access to consumer financial products and services. The CFPB concludes that the interim final rule will benefit consumers and covered persons by granting them access, as required by the Freedom of Information Act, 5 U.S.C. 552, and the Privacy Act of 1974, 5 U.S.C. 552a, to certain records and information of the CFPB. It will also benefit consumers and covered persons by protecting the confidentiality of sensitive information that pertains to them and which the CFPB receives or generates during the course of its work. The interim final rule will not impose any obligations on consumers or covered persons and it does not have any direct relevance to consumers' access to consumer financial products and services. Although the interim final rule allows the CFPB to disclose confidential information outside of the CFPB in certain instances, such disclosures are largely required by the Act or are consistent with disclosure practices of the other federal financial regulatory agencies. Any costs that may ensue from such disclosures are likely to be minimal because the rule restricts the circumstances under which confidential information may be disclosed, the permissible recipients of such disclosed information, the further disclosure and dissemination of such information by its recipients, and in many instances, the rule requires prior Start Printed Page 45377notice of disclosure to affected persons. Moreover, the sharing of confidential information that the interim final rule contemplates is necessary for the CFPB—along with other federal and state agencies that share the CFPB's responsibilities regarding the supervision of financial institutions and the enforcement of consumer financial laws—to fulfill these responsibilities effectively, efficiently, and to the overall benefit of consumers and covered persons alike.
Disclosure of confidential supervisory information to and by supervised financial institutions.
Disclosure of confidential information to law enforcement agencies and other government agencies.
Disclosure of confidential consumer complaint information.
Affirmative disclosure of confidential information.
Other disclosures of confidential information.
(b) CFPB means the Bureau of Consumer Financial Protection.Start Printed Page 45378
(c) Chief FOIA Officer means the Chief Operating Officer of the CFPB, or any CFPB employee to whom the Chief Operating Officer has delegated authority to act under this part.
(2) Information required to be made available for public inspection and copying or, in the alternative, to be published and offered for sale (see section 1070.13 of this subpart); andStart Printed Page 45379
(3) Information required to be made available to any member of the public upon specific request (see sections 1070.14 through 1070.22 of this subpart).
(2) In order to ensure the CFPB's ability to communicate effectively with Start Printed Page 45380the requester, a request should include contact information for the requester, including, to the extent available, a mailing address, telephone number, and e-mail address at which the CFPB may contact the requester regarding the request;
(a) In general. Except as set forth in paragraphs (b) through (d) of this section, and § 1070.17 of this subpart, the CFPB shall respond to requests according to their order of receipt.
(d) Unusual circumstances. (1) Where the CFPB determines that due to unusual circumstances it cannot respond either to a request within the time period set forth in paragraph (c) of this section or to an appeal within the time period set forth in § 1070.21 of this subpart, the CFPB may extend the applicable time periods by informing the requester in writing of the unusual circumstances and of the date by which Start Printed Page 45381the CFPB expects to complete its processing of the request or appeal. Any extension or extensions of time with respect to a request or an appeal shall not cumulatively total more than ten (10) business days. However, if the CFPB determines that it needs additional time beyond a ten (10) business day extension to process the request or appeal, then the CFPB shall notify the requester and provide the requester with an opportunity to limit the scope of the request or appeal or to arrange for an alternative time frame for processing the request or appeal or a modified request or appeal. The requester shall retain the right to define the desired scope of the request or appeal, as long as it meets the requirements contained in this subpart.
(3) In the case of a request for inspection, the requester shall be notified in writing of the determination, when and where the requested records Start Printed Page 45382may be inspected, and of the fees incurred in complying with the request. The CFPB shall then promptly make the records available for inspection at the time and place stated, in a manner that will not interfere with CFPB's operations and will not exclude other persons from making inspections. The requester shall not be permitted to remove the records from the room where inspection is made. If, after making inspection, the requester desires copies of all or a portion of the requested records, copies shall be furnished upon payment of the established fees prescribed by section 1070.22 of this subpart. Fees may be charged for search and review time as stated in section 1070.22 of this subpart.
(iv) Advise the requester of the right to administrative appeal in accordance with § 1070.21 of this subpart; and
(1) A statement of the reasons for which the submitter's disclosure objections were not sustained;Start Printed Page 45383
(1) If appeal is made in writing, it shall be addressed to and submitted to the officer specified in paragraph (e) of this section at the address set forth in § 1070.14(b) of this subpart. The appeal shall be labeled “Freedom of Information Act Appeal.”
(i) The CFPB shall charge for search time at the salary rate(s) (basic pay plus sixteen (16) percent) of the employee(s) who conduct the search. However, where a single class of employee is used exclusively (e.g. , all administrative/clerical, or all professional/executive), an average rate for the range of grades typically involved may be established. This charge shall include transportation of employees and records necessary to the search at actual cost. Fees may be charged for search time even if the search does not yield any responsive records, or if records are exempt from disclosure.
(ii) The CFPB shall charge the requester for the actual direct cost of the search, including computer search time, runs, and the operator's salary. The fee for computer output will be the actual Start Printed Page 45384direct cost. For a requester in the “all other” category, when the cost of the search (including the operator time and the cost of operating the computer to process a request) equals the equivalent dollar amount of two hours of the salary of the person performing the search (i.e. , the operator), the charge for the computer search will begin.
(3) The CFPB shall charge a requester for time spent by its employees examining responsive records to determine whether any portions of such record are exempt from disclosure, pursuant to the FOIA exemptions of 5 U.S.C. 552(b). The CFPB shall also charge a requester for time spent by its employees redacting any such exempt information from a record and preparing a record for release to the requester. The CFPB shall charge a requester for time spent reviewing records at the salary rate(s) (i.e. , basic pay plus sixteen (16) percent) of the employees who conduct the review. However, when a single class of employee is used exclusively (e.g. , all administrative/clerical, or all professional/executive), an average rate for the range of grades typically involved may be established. Fees shall be charged for review time even if records ultimately are not disclosed.
(4) Other requesters who do not fit any of the categories described above Start Printed Page 45385shall be charged the full direct cost of searching for and duplicating records that are responsive to the request, except that the CFPB shall provide the first one hundred (100) pages of duplication and the first two hours of search time free of charge. The CFPB may recover the cost of searching for records even if there is ultimately no disclosure of records, or no records are located. Requests from persons for records about themselves filed in the CFPB's systems of records shall continue to be treated under the fee provisions of the Privacy Act of 1974, 5 U.S.C. 552a, which permit fees only for duplication, after the first one hundred (100) pages are furnished free of charge.
(3) If the CFPB fails to comply with any time limit under §§ 1070.16 or 1070.21 of this subpart, and no unusual circumstances (as that term is defined in § 1070.16(d)) or exceptional circumstances apply to the processing of the request, then the CFPB shall not assess search fees, or if the requester is an educational or noncommercial scientific institution, then the CFPB shall not assess duplication fees. The term exceptional circumstances does not include a delay that results from a predictable CFPB workload of requests, unless the CFPB demonstrates reasonable progress in reducing its backlog of pending requests; or
(2) If the requester has failed to state a limit and the fees are estimated to exceed $250, the requester shall be notified of the estimated fees and provided a breakdown of the fees attributable to search, review, and Start Printed Page 45386duplication, respectively. The requester must pre-pay such amount prior to the processing of the request, or provide satisfactory assurance of full payment if the requester has a history of prompt payment of FOIA fees. The requester shall also be given an opportunity to reformulate the request in such a way as to lower the applicable fees.
(h) Charging interest. The CFPB may charge interest on any unpaid bill starting on the 31st day following the date of billing the requester. Interest charges will be assessed at the rate provided in 31 U.S.C. 3717 and will accrue from the date of the billing until payment is received by the CFPB. The CFPB will follow the provisions of the Debt Collection Act of 1982 (Public Law 97-365, 96 Stat. 1749), as amended, and its administrative procedures, including the use of consumer reporting agencies, collection agencies, and offset.
(3) Official Information means all information of any kind, however stored, that is in the custody and control of the CFPB or was acquired by CFPB Start Printed Page 45387employees, or former employees as part of their official duties or because of their official status while such individuals were employed by or served on behalf of the CFPB. Official information also includes any information acquired by CFPB employees or former employees while such individuals were engaged in matters related to consumer financial protection functions prior to the employees' transfer to the CFPB pursuant to Subtitle F of the Consumer Financial Protection Act of 2010.
(a) If, as part of a proceeding in which the United States or the CFPB is not a party, official information is sought Start Printed Page 45388through a demand for testimony, CFPB records, or other material, the party seeking such information must (except as otherwise required by federal law or authorized by the General Counsel) set forth in writing:
§ 1070.38
(c) Upon a showing by the requestor of exceptional need or unique circumstances and that the anticipated testimony will not be adverse to the Start Printed Page 45389interests of the United States, the General Counsel may, consistent with 5 CFR 2635.805, exercise his or her discretion to grant special, written authorization for CFPB employees, or former employees, to appear and testify as expert witnesses at no expense to the United States.
§ 1070.40
§ 1070.41
§ 1070.42
§ 1070.43
(1) Upon receipt of a written request that contains the information required by paragraph (b)(2) of this paragraph, the CFPB may, in its sole discretion, disclose confidential information to a federal or state agency to the extent that disclosure of the information is relevant to the exercise of the agency's statutory or regulatory authority or, with respect to the disclosure of confidential supervisory information, to a federal or state agency having jurisdiction over a supervised financial institution.Start Printed Page 45390
(2) To obtain access to confidential information pursuant to paragraph (b)(1) of this section, an authorized officer or employee of the agency shall submit a written request to the General Counsel, who shall act upon the request in consultation with the CFPB's Associate Director for Supervision and Enforcement or other appropriate CFPB personnel. The request shall include the following:
§ 1070.44
§ 1070.45
(1) To a CFPB employee, as that term is defined in § 1070.2 of this part and in accordance with § 1070.41 of this subpart;
§ 1070.46
§ 1070.47
(4) Nothing in this section shall prevent a supervised financial institution, federal or state agency, any officer, director, employee or agent thereof, or any other person to whom the information is made available under this subpart from complying with a legally valid and enforceable United States federal court order compelling production of the CFPB's confidential information or, if compliance is deemed compulsory, with a request or demand from either House of the Congress or a duly authorized committee of the Congress. To the extent that compulsory disclosure of confidential information occurs as set forth in this paragraph, the Start Printed Page 45391producing party shall use its best efforts to ensure that the requestor secures an appropriate protective order or, if the requestor is a legislative body, use its best efforts to obtain the commitment or agreement of the legislative body that it will maintain the confidentiality of the confidential information.
(a) Copies of records. The CFPB shall provide the requester with copies of records requested pursuant to section 1070.53 of this subpart at the same cost charged for duplication of records under § 1070.22 of this part.
(2) Notwithstanding paragraph (c)(1) of this section, a designated official may require additional proof of the requester's identity before action will be taken on any request, if such official determines that it is necessary to protect against unauthorized disclosure of information in a particular case. In Start Printed Page 45392addition, if a requester seeks records pertaining to an individual in the requester's capacity as that individual's guardian, the requester shall be required to provide adequate proof of the requester's legal relationship before action will be taken on any request.
(1) When the CFPB discloses information in response to a request, the CFPB will make the information available for inspection and copying during regular business hours as provided in § 1070.13 of this part, or the CFPB will mail it or email it the requester, if feasible, upon request.
(c) Denial of a request. If the CFPB denies a request made pursuant to § 1070.53 of this subpart, it will inform the requester in writing of the reason(s) for denial and the procedures for appealing the denial.
If an individual requests medical or psychological records pursuant to § 1070.53 of this subpart, the CFPB will disclose them directly to the requester unless the CFPB determines that such disclosure could have an adverse effect on the requester. If the CFPB makes that determination, the CFPB will provide the information to a licensed physician or other appropriate representative that the requester designates, who may disclose those records to the requester in a manner he or she deems appropriate.
(3) When making a request for amendment of a record, the CFPB will require a requester to verify his or her identity under the procedures set forth in § 1070.53(c) of this subpart, unless the requester has already done so in a related request for access or amendment.
(a) Appeal. A requester may appeal a denial of a request made pursuant to §§ 1070.53 or 1070.56 of this subpart within ten (10) business days after the CFPB notifies the requester that it has denied the request.
The CFPB will not disclose any record about an individual contained in a system of records to any person or agency without the prior written consent of that individual unless the disclosure is authorized by 5 U.S.C. 552a(b). Disclosures authorized by 5 U.S.C. 552a(b) include disclosures that are compatible with one or more routine uses that are contained within the CFPB's Systems of Records Notices, which are available on the CFPB's Web Start Printed Page 45393site, at http://www.consumerfinance.gov.
(a) Exempt systems of records. Pursuant to 5 U.S.C. 552a(k)(2), the CFPB exempts the systems of records listed below from 5 U.S.C. 552a(c)(3), (d), (e)(1), (e)(4)(G)-(H), and (f), and §§ 1070.53 through 1070.59 of this subpart, to the extent that such systems of records contain investigatory materials compiled for law enforcement purposes, provided, however, that if any individual is denied any right, privilege, or benefit to which he or she would otherwise be entitled under federal law, or for which he or she would otherwise be eligible as a result of the maintenance of such material, such material shall be disclosed to such individual, except to the extent that the disclosure of such material would reveal the identity of a source who furnished information to the CFPB under an express promise that the identity of the source would be held in confidence:
Start Printed Page 45394