CFPB Tackles Non-Banks
Proving that they will make lives miserable for non-banks as well as banks, the Consumer Financial Protection Bureau has been focusing much of its current efforts on regulating non-banks.
“More of their focus is going to be on the nonbanks from a rulemaking point of view,” said Anthony Gibbs, a former regional director of supervision at the CFPB who is now a senior director at Alvarez & Marsal. “Prior to the CFPB’s existence, the nonbanks haven’t had their compliance management systems tested to the degree of depository institutions, so this is a turning point for them.”
Before Gibbs left late last year, the agency was nearing a 50/50 split in its supervisory attention to banks and nonbanks, after starting out focusing mostly on banks, he said. The agency also recently announced that it would be developing a proposal to supervise the largest nonbank lenders for consumer installment and vehicle title loans.
Areas of focus in 2016 for the CFPB include Payday loans, debt collection, auto title loans, and deposit-advance loans.