The Consumer Financial Protection Bureau is seeking public input on whether it should raise the thresholds for determining which nonbank service providers fall under its supervisory authority, saying the current thresholds may not justify the compliance burdens on the entities covered.
In four advanced notices of proposed rulemaking to be published tomorrow, the CFPB is seeking comment on rewriting the larger participant rules for nonbanks providing services in the international money transfer, debt collection, consumer reporting and automobile financing markets. Nonbanks below the size specified in the rules are not subject to CFPB examinations.
“The bureau is concerned that the benefits of the current threshold may not justify the compliance burdens for many of the entities that are currently considered larger participants in this market, and that the current threshold may be diverting limited bureau resources to determine who among the universe of providers may be subject to the bureau’s supervisory authority and whether these providers should be examined in a particular year,” the CFPB said in each of the filings.
The CFPB is currently not seeking to revise a final rule adopted last year to regulate large nonbank firms that provide digital payments services, including peer-to-peer payments and mobile wallets. The bureau limited the scope of the rule so it only applies to providers that conduct more than 50 million transactions annually, and it excludes services for cryptocurrency and other digital assets.
