The Consumer Financial Protection Bureau has released a finalrule that identifies which consumer reporting agencies qualify as “larger marketparticipants” and therefore subject to federal regulatorysupervision for the first time ever.
|The rule, which takes effect Sept. 30, will apply to creditreporting agencies with annual receipts of more than $7million.
|CFPB Director Richard Cordray announced the release of the finalrule on Monday during a field hearing in Detroit on consumer credit.
|“[The credit reporting] system must merit our trust andconfidence for the credit markets to be perceived as fair,” Cordraysaid at the hearing.
|“We all share in this responsibility. But the credit reportingmarket is not one where consumers can shop around among differentproviders, for people have no choice about whether to have any ofthe credit reporting companies keep track of their credit history,”Cordray said. “That is why the consumer bureau's new authority isso important, and why it must be exercised carefully andeffectively.”
|Credit reporting agency supervision will include a compliancereview, on-site exams, and regulatory reporting, the CFPB said.
|The bureau also posted Monday a semi-annual update of its rulemaking agenda, which it submitted to theOffice of Management and Budget to be part of the full federalUnified Agenda.
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