Consumer Credit Reporting and Debt Collectors soon to be Policed by the CFPB

As we reported in a recently the US Consumer Financial Protection Bureau (CFPB) has announced plans to police the consumer credit bureaus, including “the Big Three”: Experian, Equifax, and TransUnion, along with monitoring major debt collectors.   

Outsell’s analyst Elizabeth Mason opines in her recent insight that the demeaning part for the credit bureaus comes with being grouped with the formerly unregulated debt collectors and that Outsell expects the regulatory impact on the consumer credit bureaus to face delays.  The main reason for delay may be budgetary constraints which may weigh on planned supervision initiatives.  The CFPB, the Securities and Exchange Commission, and the Commodities Future Trading Commission, all charged with executing the Dodd-Frank financial reform laws, require additional funding.  Government administrators estimated that the CFPB would need $448 million in 2013, an increase of $118 million from the previous year. 

Regarding the CFPB’s priorities it is too early to determine what their priorities are in respect to consumer credit reporting.  At the moment much attention is given to mortgage originations and to checking account fees. 

Source:   Outsell Inc.