The Consumer Financial Protection Bureau has released a final rule that identifies which consumer reporting agencies qualify as “larger market participants” and therefore subject to federal regulatory supervision for the first time ever.
The rule, which takes effect Sept. 30, will apply to credit reporting agencies with annual receipts of more than $7 million.
CFPB Director Richard Cordray announced the release of the final rule on Monday during a field hearing in Detroit on consumer credit.
“[The credit reporting] system must merit our trust and confidence for the credit markets to be perceived as fair,” Cordray said at the hearing.
“We all share in this responsibility. But the credit reporting market is not one where consumers can shop around among different providers, for people have no choice about whether to have any of the credit reporting companies keep track of their credit history,” Cordray said. “That is why the consumer bureau’s new authority is so important, and why it must be exercised carefully and effectively.”
Credit reporting agency supervision will include a compliance review, on-site exams, and regulatory reporting, the CFPB said.
The bureau also posted Monday a semi-annual update of its rulemaking agenda, which it submitted to the Office of Management and Budget to be part of the full federal Unified Agenda.