Tuesday, May 29, 2012
The CFPB noted that the procedures would include how to notify a nonbank that it is being considered for supervision and provide the nonbank with a "reasonable opportunity" to respond to the notice. The proposal would also create a mechanism for nonbanks to file petitions to terminate the CFPB's supervision of them. The nonbanks would be able to file these petitions two years after the CFPB instituted oversight of them.
The CFPB added that a supervision notification may offer no further information than that the nonbank may be supervised, and that, part of its supervisory mandate, it can require reports from nonbanks and conduct audits of nonbanks.
Under the Dodd-Frank Act of 2010, the CFPB was granted the authority to supervise the business practices of nonbanks, such as payday lenders and prepaid card companies, if they receive consumer complaints or other information. The proposed rule is available online at www.consumerfinance.gov/notice-and-comment/ .
The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.
Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.