At a field hearing later today (10AM PST) in Seattle, Wash., the Consumer Financial Protection Bureau will release its final rule defining “larger market participants” in consumer debt collection. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, “The Bureau has the authority to supervise nonbank covered persons of all sizes in the residential mortgage, private education lending, and payday lending markets. In addition, the Bureau has the authority to supervise nonbank “larger participant[s]” of markets for other consumer financial products or services, as the Bureau defines by rule,” according to the “Final Rule” published today.
Chief among the provisions of the Final Rule for debt collectors is the requirement that “larger participants” earn a minimum of $10 million in annual revenue to be considered large and that direct supervision of larger participant entities will commence January 2, 2013. Based on the established revenue threshold, roughly 175 large accounts receivable management firms will fall by rule under direct CFPB supervision.
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Michael Klozotsky is the Chief Content Officer at insideARM.com and insidePatientFinance.com.