CFPB And FTC Agree To Coordinate Enforcement And Regulatory Efforts

The Consumer Financial Protection Bureau ("CFPB") and the Federal Trade Commission ("FTC") recently signed a Memorandum of Understanding ("MOU"), as required under the Dodd-Frank Act, to coordinate their efforts to enforce consumer financial laws, avoid duplicative activities, and promote information sharing. The MOU broadly outlines the CFPB's and FTC's agreement to coordinate their actions concerning: (1) supervisory and examination information; (2) law enforcement; (3) rulemaking and agency initiatives; and (4) consumer complaints. The MOU primarily affects nonbank entities that are subject to the FTC's jurisdiction and provide financial products and services for personal, family, or household use ("MOU Covered Person"), e.g., payday lenders. As discussed below, the CFPB's agreement to share examination and supervisory information with the FTC adds additional uncertainty concerning protecting privileged and confidential information provided during a CFPB examination