The CFPB issued a rule that establishes procedures to bring under its supervisory authority certain nonbanks whose activities it has reasonable cause to determine pose risks to consumers.
The rule outlines procedures to notify a nonbank that it is being considered for supervision because the CFPB may have reasonable cause to determine that it poses a risk to consumers. The CFPB must base reasonable determinations on complaints collected by the CFPB, or on information from other sources, such as judicial opinions and administrative decisions.
The rule also sets out the procedures that the CFPB will follow to give the nonbank in question a reasonable opportunity to respond to such notice. In addition, the rule creates a mechanism for nonbanks to file a petition to terminate the CFPB’s supervisory authority after two years.