US Consumer Financial Protection Bureau Acts to Expand Its Authority Over Nonbank Consumer Financial Services Companies

August 14, 2013

The Consumer Financial Protection Bureau (“Bureau”), pursuant to its authority to extend its supervision to persons that offer or provide any consumer financial product or service that poses a risk to consumers, has adopted a final rule (“Rule”) establishing procedures to provide such persons with notice of their proposed designation for supervision. The Rule took effect on August 2, 2013.

The Rule gives broad discretion to the Bureau regarding the standards it may apply to make case-by-case designations, which may leave Bureau actions subject to challenge on several grounds.

Read "U.S. Consumer Financial Protection Bureau Acts to Expand Its Authority Over Nonbank Consumer Financial Services Companies."