If you`re involved in the financial industry, you may have heard of a tolling agreement in the context of the Consumer Financial Protection Bureau (CFPB). A tolling agreement is a legal agreement that can delay the running of the statute of limitations in a legal dispute. In the context of the CFPB, tolling agreements are often used in investigations related to violations of consumer protection laws.

Tolling agreements essentially stop the clock on the statute of limitations for a certain period of time. This can be beneficial for both parties involved in a dispute. For the CFPB, tolling agreements can give investigators enough time to fully investigate potential violations of consumer protection laws. For companies being investigated, tolling agreements can provide time to negotiate a settlement or prepare a defense.

In practice, tolling agreements can be used in a variety of ways. For example, the CFPB may request a tolling agreement if they need more time to gather evidence or interview witnesses. Alternatively, a company being investigated may propose a tolling agreement if they need time to review documents or assess the potential impact of a CFPB investigation on their business.

However, it`s worth noting that tolling agreements are not a guaranteed outcome of CFPB investigations. The decision to enter into a tolling agreement is ultimately up to the parties involved in a dispute. Additionally, tolling agreements can have both positive and negative consequences. For example, while tolling agreements can provide time to resolve disputes, they can also prolong the uncertainty and stress associated with an ongoing investigation.

Overall, tolling agreements are an important tool in the arsenal of the CFPB and companies being investigated for consumer protection law violations. They provide a way to delay the running of the statute of limitations and provide time for investigations and negotiations. However, tolling agreements are not always the right choice and should be evaluated on a case-by-case basis.