Vendor accountability is the latest topic du jour of the Consumer Financial Protection Bureau.
The CFPB released a bulletin on Monday saying financial institutions under bureau supervision, which includes credit unions with more than $10 billion in assets, may be held responsible for the actions of the companies with which they contract.
"Consumers are at a real disadvantage because they do not get to choose the service providers they deal with—the financial institution does," CFPB Director Richard Cordray said in a release. "Consumers must not be hurt by unfair, deceptive, or abusive practices of service providers. Banks and nonbanks must manage these relationships carefully and can be held accountable if they break the law."
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