Nonbank Consumer-Finance Supervision
Reviving what it calls “dormant” authority, the CFPB has finalized a proposed “procedural rule” expressly reiterating its right to govern an array of nonbanks and establishing procedures for making supervisory orders public. As a result, a wide array of nonbank providers of consumer-financial products and services face increased legal and reputational risk as well as changes to the current business model and/or product/service design if orders made public by the Bureau lead to public or political backlash akin to that leading to the decisions at many banks to eliminate or alter overdraft fees after the Bureau voiced strong objections to them.