CFPB Seeks Comment on Supervision of Large Consumer Firms
The U.S. Consumer Financial Protection Bureau is seeking comment on how it should supervise non-bank firms such as large debt collectors, credit reporting bureaus and prepaid card companies as part of new regulations required under the Dodd-Frank Act.
“Consumers deserve the peace of mind that financial companies -- both banks and non-banks -- are following the rules,” Elizabeth Warren, the Obama administration adviser setting up the bureau, said today in a statement in Washington.
The bureau, which is scheduled to formally begin work next month, is considering supervision of larger participants in six consumer credit markets that may lead to on-site examinations and registration requirements, according to the request for comment. Dodd-Frank, the financial regulatory overhaul enacted last year, requires the agency to propose regulations by July 21, 2012, on whether firms meet the definition.
Criteria for the designation could include the annual number of transactions in a market, asset size or outstanding loan balances, the bureau said. The public may comment on the rule for 45 days once it has been published in the Federal Register.
To contact the reporter on this story: Silla Brush in Washington at sbrush@bloomberg.net
To contact the editor responsible for this story: Lawrence Roberts at lroberts13@bloomberg.net
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