CBA Statement on CFPB Final Rule Extending Oversight to Non-Bank Payment Companies

WASHINGTON, D.C. – Consumer Bankers Association (CBA) President and CEO Lindsey Johnson today released the following statement in response to the Consumer Financial Protection Bureau’s (CFPB) issuance of a final rule that would permit the agency to supervise large non-bank companies offering digital payment applications and wallets:

“The CFPB was created to ensure that consumers are treated fairly and equally, whether they choose to work with banks or non-banks. 

 “As such, CBA has long called on the CFPB to ensure that consumers receive consistently high protections in the rapidly-evolving digital payments ecosystem, regardless of where they go to meet their financial needs.

“This rule which marks an important step forward for the CFPB to regularly ensure that non-bank market participants actually comply with their obligations to consumers. We look forward to reviewing the rule more closely to confirm it achieves those aims.”

Background

Under the Dodd-Frank Act, the CFPB has authority to supervise non-bank entities considered to be “a larger participant of a market for other consumer financial products or services.” The CFPB has previously utilized this authority to issue rules allowing for CFPB supervision of “larger participant” non-banks in the consumer reporting, consumer debt collection, student loan servicing, and international money transfers markets. By issuing a larger participant rule for fintech firms in the consumer payments market, the CFPB can oversee and supervise these non-banks to ensure they comply with applicable law and consumers are protected.

CBA Advocacy

• To read CBA’s statement in November 2023 responding to the CFPB’s notice of proposed rulemaking (NPRM) to supervise larger non-bank companies in the general-use digital consumer payment applications market, click HERE.
• In August 2023, CBA published a blog urging the CFPB to bolster consumer protections in the digital payments market. You can read the blog HERE. 
• In September 2022, CBA and the Center for Responsible Lending submitted a letter calling for a larger participant rule for personal consumer loans. You can read the letter HERE.
• In May 2022, CBA submitted a letter to the CFPB calling for increased oversight of fintech lenders. You can read the letter HERE.