The Consumer Financial Protection Bureauhas the power to oversee big debt collectors and credit bureaus. Before it can do so, it has to define “big.”
The agency released its proposed rule that defines the size of institutions it will supervise.
The proposal: Debt collectors with more than $10 million in annual revenue from collection activities would be under the CFPB’s supervision. That’s about 175 debt collection firms. It includes those that collect on behalf of others, those that buy debt and then try to collect, and lawyers who collect through lawsuits.
Also, the CFPB would have oversight on credit reporting agencies with more than $7 million in revenue from their reproting activities. The CFPB says that’s about 30 credit reporting agencies.Copyright © 2014, The Baltimore Sun