ISPLA News- CFPA to regulate Credit Bureaus and Collectors
- Credit bureaus and debt collectors to come under the gun of the new Consumer
Financial Protection Agency.
Not only will major credit bureaus and collection agencies be targeted, but
what is referred to as "The Fourth Business" is also being scrutinized. In a
Washington Post article last July reference was made to L2C which tracks
consumers' auto warranties, cell phone bills, magazine subscriptions,
prepaid cards, pay day loans and whether one's checks cleared.
A February 16 Market Watch article by Maya Jackson reads: "Debt collectors
and credit reporting agencies -- two markets that are impacting more and
more consumers -- would face federal supervision for the first time under a
rule a new U.S. federal watchdog proposed Thursday.
"The proposal would allow the Consumer Financial Protection Bureau to
examine roughly 200 firms, including large debt collectors such as Encore
Capital, Asset Acceptance, NCO Group and Portfolio Recovery Associations.
"In addition, the bureau plans to police credit bureaus such as Equifax
Inc., Trans Union LLC and Experian Information Solutions, Inc. and
CoreLogic, which provide consumer information to businesses.
The new agency plans on regulating debt collectors with more than $10
million in annual receipts from debt collection activities, which reportedly
covers about 175 debt collection firms. The basis of the proposed regulation
is that the "consumer reporting market also plays a critical role in the
consumer finance world by providing credit reports that banks use to decide
whether to extend a loan or that employers may use when deciding who to
The Consumer Data Industry Association indicates that each year there are 36
billion updates to consumer files, and three billion reports are issued. The
three largest consumer reporting agencies maintain information on 200
million American consumers."
The CFPA proposal would allow supervisory authority over about 30 consumer
reporting agencies that together account for about 94% of the annual
receipts from consumer reporting.
The full article is available at:
A Washington Post article is also available at:
The proposed rule is open for comment for 60 days after the rule is
published in the Federal Register. Stay tuned to see how this plays out
regarding information brokers. ISPLA will be reviewing the Federal Register
and working with other stakeholders to protect the interests of
ISPLA Director of Government Affairs
Your Proactive Voice from State Capitols to the Nation's Capitol
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