The CFPB adopted a rule today to begin supervising larger consumer reporting agencies, which include credit bureaus or credit reporting companies. The CFPB will supervise consumer reporting agencies that have more than $7 million in annual receipts. The CFPB estimates that its supervisory authority will extend to approximately 30 companies that account for about 94% of the market’s annual receipts. This is the first time these companies will be supervised at the federal level.
The CFPB’s approach to supervising credit reporting will be similar to its approach to supervising banks and other nonbanks already subject to CFPB supervision. The credit reporting companies will be subject to review of compliance systems and procedures, on-site examinations, discussions with relevant personnel, and will be required to produce relevant reports.
The rule will be effective Sept. 30, 2012.
Read the CFPB’s Fact Sheet.
Read the final rule.