This posting was written by Sarah Borchersen-Keto, CCH Washington Correspondent.
A proposed rule from the Consumer Financial Protection Bureau (CFPB)would place debt collectors and consumer reporting agencies that qualify as larger market participants within the bureau’s nonbank supervision program, marking the first time these activities would face federal supervision.
The proposed rule would cover debt collectors with over $10 million in annual receipts from debt collection activities. The CFPB estimates that approximately 175 debt collection firms would be under their supervision, accounting for 63 percent of annual receipts from the debt collection market.
Meanwhile, consumer reporting agencies with over $7 million in annual receipts would be subject to CFPB supervision, representing approximately 30 consumer reporting companies that account for about 94 percent of annual receipts.
“Consumer financial products and services have become more complex over the years and they have expanded well beyond traditional banks,” noted CFPB Director Richard Cordray.
The CFPB has until July 21, 2012 to issue an initial rule defining larger market participants that could come under CFPB supervision. The bureau is seeking public input as to which markets to include in the initial rule and which data sources the bureau might use to determine larger participants in nonbank markets.
The CFPB noted that as it adds new markets to monitor it will choose the best criteria for determining market participation, as well as the appropriate thresholds for individual markets.
Showing posts with label CFPB. Show all posts
Showing posts with label CFPB. Show all posts
Friday, February 17, 2012
Wednesday, January 04, 2012
Cordray to Be Installed as Head of Consumer Financial Protection Bureau
This posting was written by Sarah Borchersen-Keto, CCH Washington Correspondent.
President Obama said he will use a recess appointment to install former Ohio attorney general Richard Cordray as head of the Consumer Financial Protection Bureau (CFPB), sidestepping protracted Republican efforts to block the nomination in the Senate. The GOP, however, questioned the legality of the move and indicated that it could be legally challenged.
Speaking at an event in Cleveland, Obama said “when Congress refuses to act and as a result hurts our economy and puts people at risk, I have an obligation as President to do what I can without them.” He added, “I will not stand by while a minority in the Senate puts party ideology ahead of the people they were elected to serve. Not when so much is at stake.”
Nomination Held “Hostage”
If Republicans were to continue to hold Cordray’s nomination “hostage,” the President said, then “more dishonest lenders could take advantage of the most vulnerable among us,” while “the vast majority of financial firms who do the right thing could be undercut by those who don’t.”
Cordray, speaking prior to the announcement, said he would begin work immediately, including expanding the CFPB’s program to non-banks, “an area we haven’t been able to touch up until now.”
“Unprecedented Power Grab”
Meanwhile, House Speaker John Boehner (R, Ohio) called the decision an “extraordinary and entirely unprecedented power grab . . . that defies centuries of practice and the legal advice of his own Justice Department.”
Boehner maintained that the move “goes beyond the President’s authority, and I expect the courts will find the appointment to be illegitimate.”
Senate Minority Leader Mitch McConnell (R, Ky.), said the recess appointment “represents a sharp departure from a long-standing precedent that has limited the President to recess appointments only when the Senate is in a recess of 10 days or longer. Breaking from this precedent lands this appointee in uncertain legal territory, threatens the confirmation process and fundamentally endangers the Congress’s role in providing a check on the excesses of the executive branch.”
White House Press Secretary Jay Carney said the White House counsel believes that Senate pro forma sessions, used to prevent the President from exercising his constitutional authority, “do not interrupt the recess.”
Asked if the White House was prepared for a legal challenge, Carney said he would not speculate on the matter, noting that “the constitutional authority the President has is very clear.”
President Obama said he will use a recess appointment to install former Ohio attorney general Richard Cordray as head of the Consumer Financial Protection Bureau (CFPB), sidestepping protracted Republican efforts to block the nomination in the Senate. The GOP, however, questioned the legality of the move and indicated that it could be legally challenged.
Speaking at an event in Cleveland, Obama said “when Congress refuses to act and as a result hurts our economy and puts people at risk, I have an obligation as President to do what I can without them.” He added, “I will not stand by while a minority in the Senate puts party ideology ahead of the people they were elected to serve. Not when so much is at stake.”
Nomination Held “Hostage”
If Republicans were to continue to hold Cordray’s nomination “hostage,” the President said, then “more dishonest lenders could take advantage of the most vulnerable among us,” while “the vast majority of financial firms who do the right thing could be undercut by those who don’t.”
Cordray, speaking prior to the announcement, said he would begin work immediately, including expanding the CFPB’s program to non-banks, “an area we haven’t been able to touch up until now.”
“Unprecedented Power Grab”
Meanwhile, House Speaker John Boehner (R, Ohio) called the decision an “extraordinary and entirely unprecedented power grab . . . that defies centuries of practice and the legal advice of his own Justice Department.”
Boehner maintained that the move “goes beyond the President’s authority, and I expect the courts will find the appointment to be illegitimate.”
Senate Minority Leader Mitch McConnell (R, Ky.), said the recess appointment “represents a sharp departure from a long-standing precedent that has limited the President to recess appointments only when the Senate is in a recess of 10 days or longer. Breaking from this precedent lands this appointee in uncertain legal territory, threatens the confirmation process and fundamentally endangers the Congress’s role in providing a check on the excesses of the executive branch.”
White House Press Secretary Jay Carney said the White House counsel believes that Senate pro forma sessions, used to prevent the President from exercising his constitutional authority, “do not interrupt the recess.”
Asked if the White House was prepared for a legal challenge, Carney said he would not speculate on the matter, noting that “the constitutional authority the President has is very clear.”
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