CFPB aims to level playing field between banks, fintech

The Consumer Financial Protection Bureau (CFPB) announced Monday that it would examine nonbank financial companies that pose a risk to consumers by invoking a largely unused legal provision to level the playing field between banks and nonbanks. Larger international remittance providers, consumer rep...

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Bibliographic Details
Published inPayments Dive
Main Author Berr, Jonathan
Format Newsletter
LanguageEnglish
Published Louisville Industry Dive 25.04.2022
Subjects
Bank technology
Consumer protection
Consumers
Student loans
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Summary:The Consumer Financial Protection Bureau (CFPB) announced Monday that it would examine nonbank financial companies that pose a risk to consumers by invoking a largely unused legal provision to level the playing field between banks and nonbanks. Larger international remittance providers, consumer reporting agencies, debt collectors and student loan lenders are also subject to the bureau’s oversight, as are nonbank entities the bureau has “reasonable cause to determine pose risk to consumers” the CFPB statement said. The Consumer Bankers Association applauded the move and noted the rise in banking activity outside the regulated banking system increases risks to consumers who don't get the same level of protection at nonbanks.