On May 9, the CFPB published its intention to withdraw numerous guidance documents issued since the agency began its operations in 2011. The withdrawal includes a wide range of materials such as policy statements, interpretive rules, advisory opinions, and other guidance documents like circulars and bulletins, with each of the withdrawn guidance documents listed in section III of the CFPB’s notice. This action follows Executive Order 13891, which directed agencies to refrain from using guidance documents to create new rights or obligations and noted that agencies may impose legally binding requirements on the public only through regulations and on parties on a case-by-case basis through adjudications, and only after appropriate process, except as authorized by law or as incorporated into a contract. The CFPB’s current policy is to issue guidance only when necessary and when it reduces compliance burdens.
This action stems from Acting Director Vought’s internal memo directing staff to review all guidance material on April 11. The CFPB’s decision to withdraw these guidance materials is based on three independent reasons. First, the Bureau aims to issue guidance only when it is necessary and reduces compliance burdens. Second, the Bureau is scaling back its enforcement activities in line with directives to deregulate the bureaucracy, reducing the need for interpretive guidance. Third, the Bureau does not believe that any reliance interests justify retaining the guidance, as it is generally non-binding and does not create substantive rights.
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