• Service: Advisory, Risk Consulting, Financial Risk Management
  • Industry: Banking & Capital Markets
  • Type: Publication series
  • Date: 4/15/2012

Regulatory Practice Letter #12-07 

The Bureau of Consumer Financial Protection (“CFPB” or “Bureau”) published a proposed rule on February 17, 2012, that would define “larger participants” in the consumer debt collection and consumer reporting markets for purposes of identifying companies subject to CFPB supervision under its nonbank supervision program. Comments on the proposed rule are due by April 17, 2012.
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In general, the proposed rule would define a “larger participant”:

  • In the consumer debt collection market to include debt collectors with more than $10 million in annual receipts from debt collecting. The CFPB estimates this threshold would encompass 175 companies comprising 4 percent of the debt collection companies and more than 60 percent of the market receipts.
  • In the consumer reporting market to include persons that receive more than $7 million in annual receipts from consumer reporting. The CFPB estimates approximately 30 companies would meet this requirement, representing 7 percent of consumer reporting companies and 94 percent of consumer reporting revenues.