Consumer Financial Protection Act
September 30, 2010In a recent Federal Register announcement, Treasury Secretary Geithner announced that pursuant to the Consumer Financial Protection Act of 2010 (“CFP Act”), the Secretary of the Treasury designates July 21, 2011, as the date for the transfer of functions to the Bureau of Consumer Financial Protection (“CFPB”). On this date, “consumer financial protection functions” currently carried out by the Federal banking agencies, as well as certain authorities currently carried out by Federal Trade Commission and the Department of Housing and Urban Development, will be transferred to the CFPB. Specifically, as of the transfer date, the CFPB will assume responsibility for consumer compliance supervision of very large depository institutions and their affiliates and promulgating regulations under various Federal consumer financial laws. New authorities of the CFPB under subtitle C of the Act, as well as other consumer protection provisions, will become effective on the transfer date as well.
Prior to the transfer date, the CFPB will begin to conduct research relating to consumer financial products and services, develop its nationwide consumer complaint response center, plan and take steps to implement the risk-based supervision of nondepository covered persons, and prepare for the opening of outreach offices. Development of the supervision program for certain nondepository covered persons is significant because no Federal agency previously has had the responsibility of supervising these entities, such as payday lenders, mortgage companies, debt collectors, and consumer reporting agencies.
