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April 4, 2013 – The CFPB has been asking debt collection firms under its supervisory authority for data that it will use in audits of the firms' operations, the American Bankerreported Wednesday.

The CFPB last year finalized a rule on the bureau's supervision of large nonbank participants in the debt collections marketplace. The bureau's review of the largest debt collection firms is expected to cover everything from the firms' practices to the quality of the data provided by lenders (including credit unions) in engaging the firms.

"We're really trying to take a comprehensive view of the credit system and where the risks are to consumers," Alice Hardy, the CFPB's deputy assistant director for supervision policy, is quoted saying in Wednesday's Banker article. "Our ability to conduct onsite examinations allows us to monitor every stage of the process – from credit origination to debt collection."

The CFPB issued is final rule on supervision of large debt collection firms in October. The rule provides that the CFPB will supervise firms that generate more than $10 million in annual receipts.

The CFPB designated the firms under its Dodd-Frank Act authority to designate large nonbank financial services firms. A similar rule affecting consumer reporting agencies with more than $7 million in annual receipts took effect Sept. 30. The rule preamble estimated the bureau will be supervising about 175 companies from a field of about 4,500 firms.

NAFCU, in an official comment letter, supported subjecting nonbank providers to federal supervision and recommended that the CFPB look at factors such as market share, size and number of services. It urged against setting a single threshold across all markets. The CFPB's final rule appears to follow that construct, but NAFCU urged that the threshold for debt collectors, whose annual receipts average $500,000, be set lower than $10 million.

• "How CFPB exams will change the debt collection industry,"American Banker 4/3
• NAFCU comment letter