Civil Investigative Demand Reform Act of 2025
Civil Investigative Demand Reform Act of 2025
Plain Language Summary
# Civil Investigative Demand Reform Act of 2025 - Summary **What the Bill Does:** This bill would change how the Consumer Financial Protection Bureau (CFPB) investigates potential violations of consumer financial laws. Currently, the CFPB can issue "civil investigative demands"—essentially formal requests for information and testimony from companies and individuals suspected of breaking consumer protection rules. The bill would add new limits and protections to this process, including setting a six-year deadline for issuing demands after a violation occurs, requiring the CFPB to cite specific facts about alleged violations, and allowing lawyers to submit questions on behalf of witnesses during testimony. **Who It Affects:** Banks, financial companies, and individuals who might be investigated by the CFPB would be the primary beneficiaries of these reforms.
Consumer advocates might argue that stricter limits could make it harder for the agency to protect consumers, while business groups generally support measures that limit government investigation powers. **Key Changes:** The bill also lets people being investigated ask a court to review and potentially reject or modify demands they believe are overly burdensome or expensive. These court petitions would be kept confidential. Overall, the bill aims to provide companies and individuals with more due process protections during CFPB investigations. **Status:** Currently in committee and has not yet been voted on by the full House.
CRS Official Summary
Civil Investigative Demand Reform Act of 2025This bill revises the Consumer Financial Protection Bureau’s (CFPB’s) civil investigative demand process. The demand process is used to gather information relevant to a violation of consumer financial law before formal proceedings. Under the bill, such demands must be issued and served no later than six years after the date of the violation. The demand must also provide specific reference to particular facts regarding the violation. The bill establishes a process that allows an advising attorney to submit questions on behalf of a person compelled by a demand to appear for oral testimony. The bill also allows for judicial review if the CFPB denies a petition to set aside or modify a demand. These petitions must be treated as confidential.In addition, the bill expands the grounds on which a petitioner may seek relief from such a demand to include a demonstration that the demand (1) is unduly burdensome, expensive, and outside the scope of the inquiry; (2) is unreasonably cumulative or duplicative; or (3) can be obtained from some other source that is more convenient, less burdensome, or less expensive.
Latest Action
Referred to the House Committee on Financial Services.