Nonbank Financial Companies Now Covered By Consumer Laws
Highlights
The Consumer Financial Protection Bureau intends to examine and supervise nonbank financial providers, products and services under broad authority granted under Dodd-Frank Act
“Nonbank covered persons” – consumer financial product and service providers, and their affiliates – are now required to comply with federal consumer protection laws, just like traditional banking institutions
Consumer complaints, news reports, judicial opinions, and state and federal CFPB partner agencies can trigger examinations and supervisions
The Consumer Financial Protection Bureau (CFPB) recently welcomed nonbank fintech companies to the world of CFPB regulation. It did so by announcing its intent to use its long-dormant authority to hold nonbank financial companies to the same standards as traditional banking institutions when it comes to consumer financial products and services.
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