CFPB opened a rule for comment that would define which debt collector and consumer reporting companies it will regulate. The Dodd-Frank and Consumer Protection Acts gave the CFPB authority to supervise “larger participants” in debt collection, consumer reporting, auto financing and money servicing businesses. Under these acts, the Bureau is required to define a threshold that would designate which companies fall under CFPB regulation.
Debt collectors with more than $10 million in annual receipts will be subject to supervision. According to the CFPB, the rule brings approximately 4 percent of the industry, or 175 collection firms, under supervision. Consumer reporting agencies would be supervised if they receive more than $7 million in annual receipts. The rule adds 7 percent of this industry, or 30 companies, to CFPB supervision.
The CFPB further noted that subsequent rulemakings covering additional markets may use different criteria as appropriate for each market. “As the CFPB adds new markets, it will choose the best criteria and the appropriate thresholds for each market,” its website said.