CFPB Announces Supervision of Credit Reporting Agencies
Monday, the Consumer Financial Protection Bureau ("CFPB") announced that it would begin to supervise credit reporting agencies. According to the CFPB, this is the first time the consumer reporting agencies will be subject to a federal supervision program. Formal supervision will start September 30, and on-site examinations will begin after that date.
According to the New York Times, the CFPB will oversee and make rules to cover about 30 credit reporting companies, which represent 94% of the $4 billion credit reporting market. The CFPB's supervision and rules will not only apply to the "big three" credit reporting agencies, Experian, Equifax, and TransUnion, but also to those with more than $7 million in annual revenue.
The CFPB also posted a list of consumer reporting agencies, which consists of companies that have identified themselves as consumer reporting companies or provide consumers access to their credit reports. The CFPB made the announcement as part of it attempts to define the "larger participants" among consumer financial companies as part of its Dodd-Frank supervision authority.