CFPB Seeks More Protection Power
The bureau proposed a rule Thursday that would put debt collectors with more than $10 million in annual receipts and consumer reporting agencies with more than $7 million in annual receipts under its supervision.
|The CFPB has proposed a rule to add debt collectors and consumer credit reporting agencies to its jurisdiction.|
The CFPB estimates that these parameters would cover approximately 175 debt collection firms and 30 consumer credit reporting agencies, and says the 30 credit reporting agencies affected by the rule hold about 94% of the annual receipts from consumer reporting.
"Consumer financial products and services have become more complex over the years and they have expanded well beyond traditional banks," CFPB Director Richard Cordray said in a statement. "Our proposed rule would mean that those debt collectors and credit reporting agencies that qualify as larger participants are subject to the same supervision process that we apply to the banks. "
Cordray said the added oversight "would help restore confidence that the federal government is standing beside the American consumer."
The rule was made possible by a stipulation in the Dodd-Frank Wall Street Reform and Consumer Protection Act that gives the CFPB authorization to supervise "large participants" in nonbank markets for consumer financial products or services. The CFPB has until July 21 to define who these larger participants are, and the proposed rule is the first step in doing so. The bureau has already been hard at work expanding its regulatory powers to include overseas money transfers and nonbank lenders.