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June 28, 2013 – NAFCU approves of a new CFPB procedural rule to supervise nonbanks, which include companies that offer or provide financial products or services to consumers but do not have a bank, thrift or credit union charter.

The CFPB has the authority under the Dodd-Frank Act to supervise, after following certain procedures, any nonbank engaging in conduct that may involve potentially unfair, deceptive, or abusive acts or practices, or acts that potentially violate federal consumer financial law.

Of the rule, CFPB Director Richard Cordray said in a press statement, "This is an important step in our effort to continue building a strong supervision program. This rule clearly lays out how we plan to implement our supervisory authority over nonbanks that we determine pose risk to consumers. We are also providing industry with a streamlined process that is fair and efficient."

"NAFCU welcomes this procedural rule if it proves to be a step in the right direction," said NAFCU Senior Regulatory Affairs Counsel Tessema Tefferi. "NAFCU has urged, even before the CFPB formally began its work, that the CFPB use its discretionary authority to regulate unregulated actors."