The Consumer Financial Protection Bureau will begin supervising consumer credit reporting agencies, putting those organizations under federal regulatory supervision for the first time ever.
“The CFPB’s approach to supervising credit reporting will be just like its approach to supervising banks and other nonbanks already subject to CFPB supervision,” a release issued by the agency explains. “The companies will be subject to review of compliance systems and procedures, on-site examinations, discussions with relevant personnel, and they will be required to produce relevant reports.”
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According to a CFPB fact sheet accompanying today’s announcement, a new rule authored by the Bureau will give the agency the authority to supervise any credit reporting agency with more than $7 million in annual receipts. This market segment includes 30 firms, or seven percent of the overall credit reporting market, and represents 94 percent of industry receipts according to the CFPB.
The CFPB also says Americans ought to expect additional rules expanding the federal supervision of nonbanks, referring to Monday’s reporting agency rule as “the first in a series.” For example, the Bureau says it expects to finalize a rule regarding debt collection in the fall of this year.
Read more about the CFPB’s expanded powers of supervision here.
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