CFPB Details How It Will Target Risky Nonbanks for Supervision
May 25, 2012
The Consumer Financial Protection Bureau on May 24 outlined procedures for notifying nonbanks that they may be subject to supervision if they present a threat to consumers. The Dodd-Frank Act allows the agency to oversee individual companies if it has reasonable cause to believe they pose risks to consumers. "This is an important step in the development of our nonbank supervision program," says CFPB director Richard Cordray. "This proposal allows us to reach nonbanks that we would not otherwise supervise, while providing industry with a streamlined process that is fair and efficient." The proposal issued on May 24 would lay out the process for designating certain additional firms that may not fall under those categories. Under the proposed process, CFPB must provide advance notice to a firm that it has reason to believe it is engaging, or has engaged, in behavior that poses risk to consumers -- including a description of the basis for the claim. The company would then have an opportunity to respond to the notice.
Web Link - May Require Paid Subscription
External web links may expire.
Return to Headlines
Abstract News © Copyright 2008-2013 INFORMATION, INC.