diff --git a/util.go b/util.go
index 7904b1a..454aca2 100644
--- a/util.go
+++ b/util.go
@@ -28,6 +28,16 @@ import (
 	"gopkg.in/yaml.v2"
 )
 
+// Denotes failing to parse configuration file.
+type ConfigFileParseError struct {
+	err error
+}
+
+// Returns the formatted configuration error.
+func (pe ConfigFileParseError) Error() string {
+	return fmt.Sprintf("While parsing config: %s", pe.err.Error())
+}
+
 func insensitiviseMap(m map[string]interface{}) {
 	for key, val := range m {
 		lower := strings.ToLower(key)
@@ -119,31 +129,31 @@ func findCWD() (string, error) {
 	return path, nil
 }
 
-func marshallConfigReader(in io.Reader, c map[string]interface{}, configType string) {
+func marshallConfigReader(in io.Reader, c map[string]interface{}, configType string) error {
 	buf := new(bytes.Buffer)
 	buf.ReadFrom(in)
 
 	switch strings.ToLower(configType) {
 	case "yaml", "yml":
 		if err := yaml.Unmarshal(buf.Bytes(), &c); err != nil {
-			jww.ERROR.Fatalf("Error parsing config: %s", err)
+			return ConfigFileParseError{err}
 		}
 
 	case "json":
 		if err := json.Unmarshal(buf.Bytes(), &c); err != nil {
-			jww.ERROR.Fatalf("Error parsing config: %s", err)
+			return ConfigFileParseError{err}
 		}
 
 	case "toml":
 		if _, err := toml.Decode(buf.String(), &c); err != nil {
-			jww.ERROR.Fatalf("Error parsing config: %s", err)
+			return ConfigFileParseError{err}
 		}
 
 	case "properties", "props", "prop":
 		var p *properties.Properties
 		var err error
 		if p, err = properties.Load(buf.Bytes(), properties.UTF8); err != nil {
-			jww.ERROR.Fatalf("Error parsing config: %s", err)
+			return ConfigFileParseError{err}
 		}
 		for _, key := range p.Keys() {
 			value, _ := p.Get(key)
@@ -152,6 +162,7 @@ func marshallConfigReader(in io.Reader, c map[string]interface{}, configType str
 	}
 
 	insensitiviseMap(c)
+	return nil
 }
 
 func safeMul(a, b uint) uint {
diff --git a/viper.go b/viper.go
index 3db9cd2..f43ce8f 100644
--- a/viper.go
+++ b/viper.go
@@ -79,6 +79,16 @@ func (rce RemoteConfigError) Error() string {
 	return fmt.Sprintf("Remote Configurations Error: %s", string(rce))
 }
 
+// Denotes failing to find configuration file.
+type ConfigFileNotFoundError struct {
+	name, locations string
+}
+
+// Returns the formatted configuration error.
+func (fnfe ConfigFileNotFoundError) Error() string {
+	return fmt.Sprintf("Config File %q Not Found in %q", fnfe.name, fnfe.locations)
+}
+
 // Viper is a prioritized configuration registry. It
 // maintains a set of configuration sources, fetches
 // values to populate those, and provides them according
@@ -522,11 +532,11 @@ func (v *Viper) BindPFlag(key string, flag *pflag.Flag) (err error) {
 
 	switch flag.Value.Type() {
 	case "int", "int8", "int16", "int32", "int64":
-		SetDefault(key, cast.ToInt(flag.Value.String()))
+		v.SetDefault(key, cast.ToInt(flag.Value.String()))
 	case "bool":
-		SetDefault(key, cast.ToBool(flag.Value.String()))
+		v.SetDefault(key, cast.ToBool(flag.Value.String()))
 	default:
-		SetDefault(key, flag.Value.String())
+		v.SetDefault(key, flag.Value.String())
 	}
 	return nil
 }
@@ -738,22 +748,19 @@ func (v *Viper) ReadInConfig() error {
 
 	v.config = make(map[string]interface{})
 
-	v.marshalReader(bytes.NewReader(file), v.config)
-	return nil
+	return v.marshalReader(bytes.NewReader(file), v.config)
 }
 
 func ReadConfig(in io.Reader) error { return v.ReadConfig(in) }
 func (v *Viper) ReadConfig(in io.Reader) error {
 	v.config = make(map[string]interface{})
-	v.marshalReader(in, v.config)
-	return nil
+	return v.marshalReader(in, v.config)
 }
 
 // func ReadBufConfig(buf *bytes.Buffer) error { return v.ReadBufConfig(buf) }
 // func (v *Viper) ReadBufConfig(buf *bytes.Buffer) error {
 // 	v.config = make(map[string]interface{})
-// 	v.marshalReader(buf, v.config)
-// 	return nil
+// 	return v.marshalReader(buf, v.config)
 // }
 
 // Attempts to get configuration from a remote source
@@ -778,9 +785,12 @@ func (v *Viper) WatchRemoteConfig() error {
 
 // Marshall a Reader into a map
 // Should probably be an unexported function
-func marshalReader(in io.Reader, c map[string]interface{}) { v.marshalReader(in, c) }
-func (v *Viper) marshalReader(in io.Reader, c map[string]interface{}) {
-	marshallConfigReader(in, c, v.getConfigType())
+func marshalReader(in io.Reader, c map[string]interface{}) error {
+	return v.marshalReader(in, c)
+}
+
+func (v *Viper) marshalReader(in io.Reader, c map[string]interface{}) error {
+	return marshallConfigReader(in, c, v.getConfigType())
 }
 
 func (v *Viper) insensitiviseMaps() {
@@ -813,7 +823,7 @@ func (v *Viper) getRemoteConfig(provider *defaultRemoteProvider) (map[string]int
 	if err != nil {
 		return nil, err
 	}
-	v.marshalReader(reader, v.kvstore)
+	err = v.marshalReader(reader, v.kvstore)
 	return v.kvstore, err
 }
 
@@ -835,7 +845,7 @@ func (v *Viper) watchRemoteConfig(provider *defaultRemoteProvider) (map[string]i
 	if err != nil {
 		return nil, err
 	}
-	v.marshalReader(reader, v.kvstore)
+	err = v.marshalReader(reader, v.kvstore)
 	return v.kvstore, err
 }
 
@@ -940,9 +950,22 @@ func (v *Viper) searchInPath(in string) (filename string) {
 	return ""
 }
 
-// search all configPaths for any config file.
-// Returns the first path that exists (and is a config file)
+// Choose where to look for a config file: either
+// in provided directories or in the working directory
 func (v *Viper) findConfigFile() (string, error) {
+
+	if len(v.configPaths) > 0 {
+		return v.findConfigInPaths()
+	} else {
+		return v.findConfigInCWD()
+	}
+
+}
+
+// Search all configPaths for any config file.
+// Returns the first path that exists (and has a config file)
+func (v *Viper) findConfigInPaths() (string, error) {
+
 	jww.INFO.Println("Searching for config in ", v.configPaths)
 
 	for _, cp := range v.configPaths {
@@ -951,14 +974,20 @@ func (v *Viper) findConfigFile() (string, error) {
 			return file, nil
 		}
 	}
+	return "", ConfigFileNotFoundError{v.configName, fmt.Sprintf("%s", v.configPaths)}
+}
+
+// Search the current working directory for any config file.
+func (v *Viper) findConfigInCWD() (string, error) {
 
-	// try the current working directory
 	wd, _ := os.Getwd()
+	jww.INFO.Println("Searching for config in ", wd)
+
 	file := v.searchInPath(wd)
 	if file != "" {
 		return file, nil
 	}
-	return "", fmt.Errorf("config file not found in: %s", v.configPaths)
+	return "", ConfigFileNotFoundError{v.configName, wd}
 }
 
 // Prints all configuration registries for debugging
diff --git a/viper_test.go b/viper_test.go
index 8d7d152..809657b 100644
--- a/viper_test.go
+++ b/viper_test.go
@@ -8,7 +8,10 @@ package viper
 import (
 	"bytes"
 	"fmt"
+	"io/ioutil"
 	"os"
+	"path"
+	"reflect"
 	"sort"
 	"strings"
 	"testing"
@@ -126,6 +129,47 @@ func initTOML() {
 	marshalReader(r, v.config)
 }
 
+// make directories for testing
+func initDirs(t *testing.T) (string, string, func()) {
+
+	var (
+		testDirs = []string{`a a`, `b`, `c\c`, `D:`}
+		config   = `improbable`
+	)
+
+	root, err := ioutil.TempDir("", "")
+
+	cleanup := true
+	defer func() {
+		if cleanup {
+			os.Chdir("..")
+			os.RemoveAll(root)
+		}
+	}()
+
+	assert.Nil(t, err)
+
+	err = os.Chdir(root)
+	assert.Nil(t, err)
+
+	err = ioutil.WriteFile(path.Join(root, config+".toml"), []byte("key = \"root\"\n"), 0640)
+	assert.Nil(t, err)
+
+	for _, dir := range testDirs {
+		err = os.Mkdir(dir, 0750)
+		assert.Nil(t, err)
+
+		err = ioutil.WriteFile(path.Join(dir, config+".toml"), []byte("key = \"value is "+dir+"\"\n"), 0640)
+		assert.Nil(t, err)
+	}
+
+	cleanup = false
+	return root, config, func() {
+		os.Chdir("..")
+		os.RemoveAll(root)
+	}
+}
+
 //stubs for PFlag Values
 type stringValue string
 
@@ -557,3 +601,100 @@ func TestReadBufConfig(t *testing.T) {
 	assert.Equal(t, map[interface{}]interface{}{"jacket": "leather", "trousers": "denim", "pants": map[interface{}]interface{}{"size": "large"}}, v.Get("clothing"))
 	assert.Equal(t, 35, v.Get("age"))
 }
+
+func TestCWDSearch(t *testing.T) {
+
+	_, config, cleanup := initDirs(t)
+	defer cleanup()
+
+	v := New()
+	v.SetConfigName(config)
+	v.SetDefault(`key`, `default`)
+
+	err := v.ReadInConfig()
+	assert.Nil(t, err)
+
+	assert.Equal(t, `root`, v.GetString(`key`))
+}
+
+func TestCWDSearchNoConfig(t *testing.T) {
+
+	_, config, cleanup := initDirs(t)
+	defer cleanup()
+
+	// Remove the config file in CWD
+	os.Remove(config + ".toml")
+
+	v := New()
+	v.SetConfigName(config)
+	v.SetDefault(`key`, `default`)
+
+	err := v.ReadInConfig()
+	assert.Equal(t, reflect.TypeOf(UnsupportedConfigError("")), reflect.TypeOf(err))
+
+	assert.Equal(t, `default`, v.GetString(`key`))
+}
+
+func TestDirsSearch(t *testing.T) {
+
+	root, config, cleanup := initDirs(t)
+	defer cleanup()
+
+	v := New()
+	v.SetConfigName(config)
+	v.SetDefault(`key`, `default`)
+
+	entries, err := ioutil.ReadDir(root)
+	for _, e := range entries {
+		if e.IsDir() {
+			v.AddConfigPath(e.Name())
+		}
+	}
+
+	err = v.ReadInConfig()
+	assert.Nil(t, err)
+
+	assert.Equal(t, `value is `+path.Base(v.configPaths[0]), v.GetString(`key`))
+}
+
+func TestWrongDirsSearchNotFoundHasCWDConfig(t *testing.T) {
+
+	_, config, cleanup := initDirs(t)
+	defer cleanup()
+
+	v := New()
+	v.SetConfigName(config)
+	v.SetDefault(`key`, `default`)
+
+	v.AddConfigPath(`whattayoutalkingbout`)
+	v.AddConfigPath(`thispathaintthere`)
+
+	err := v.ReadInConfig()
+	assert.Equal(t, reflect.TypeOf(UnsupportedConfigError("")), reflect.TypeOf(err))
+
+	// Should not see the value "root" which comes from config in CWD
+	assert.Equal(t, `default`, v.GetString(`key`))
+}
+
+func TestWrongDirsSearchNotFoundNoCWDConfig(t *testing.T) {
+
+	_, config, cleanup := initDirs(t)
+	defer cleanup()
+
+	// Remove the config file in CWD
+	os.Remove(config + ".toml")
+
+	v := New()
+	v.SetConfigName(config)
+	v.SetDefault(`key`, `default`)
+
+	v.AddConfigPath(`whattayoutalkingbout`)
+	v.AddConfigPath(`thispathaintthere`)
+
+	err := v.ReadInConfig()
+	assert.Equal(t, reflect.TypeOf(UnsupportedConfigError("")), reflect.TypeOf(err))
+
+	// Even though config did not load and the error might have
+	// been ignored by the client, the default still loads
+	assert.Equal(t, `default`, v.GetString(`key`))
+}