Large debt collectors and credit reporting companies would face regular federal oversight for the first time under a broad new proposal announced on Thursday by the consumer finance watchdog.
The Consumer Financial Protection Bureau proposed a draft rule that would allow the agency to supervise two significant corners of the financial industry that until now have largely evaded federal scrutiny.
The draft, which limits the parameters of the new powers to the largest debt collection and credit reporting players, is the most significant proposal yet to emerge from the consumer agency and is the first of several efforts under way to police nonbank financial companies.
“Our proposed rule would mean that those debt collectors and credit reporting agencies that qualify as larger participants are subject to the same supervision process that we apply to the banks,” Richard Cordray, the new director of the bureau, said in a statement.
The proposal now enters a 60-day comment period. The bureau expects to finalize the rule by July, the two-year anniversary of the agency’s creation.