CFPB moves to withdraw statement from Citibank wire transfer case

On May 24, 2024, the CFPB filed a "Statement of Interest in Support of Plaintiff" in a lawsuit brought by New York Attorney General against Citibank N.A. [see "CFPB argues Reg E protects consumers from some wire transfer fraud," May 30, 2024]. The filing sought to advance a new interpretation of the Electronic Funds Transfer Act that would functionally amend Regulation E.

The Bureau has now concluded that this filing was highly irregular and inappropriate. Agencies cannot amend regulations through litigation filings, which do not give fair notice to regulated parties or follow the requirements of the Administrative Procedure Act. The Bureau thus disclaims the positions advanced in the filing and has moved the Court to withdraw it.