The Consumer Financial Protection Bureau (CFPB) has announced updates to its procedures for risk-based supervision of non-bank consumer finance companies. The changes follow a period earlier this year during which the CFPB sought public comments on proposed modifications to these rules.
The American Financial Services Association (AFSA) submitted feedback supporting the CFPB’s efforts, stating that the proposed changes would help reduce coercion and unfairness toward consumer finance companies.
According to AFSA, “The new changes track AFSA’s comments, restoring confidentiality to the supervisory designation process and making it more deliberative. Originally, the process involved CFPB staff making recommendations to the Director, but power was concentrated with the Director in later versions. We are pleased to see that the CFPB has gone back to the initial approach. This final rule will be effective October 27.”
The revised rule is scheduled to take effect on October 27.