Banks, Consumer Groups Bash CFPB Nonbank Supervision Rollback

Banks and consumer advocates warned the Consumer Financial Protection Bureau that rolling back supervision of nonbank auto lenders, debt collectors, consumer credit reporting companies, and international remittance providers would harm competition and customers.

The CFPB kicked off a rulemaking in August to raise the threshold for companies in those industries to be considered “larger participants” and subject to direct oversight from agency examiners. The advanced regulatory notices asked a series of questions about how to reshape existing rules to limit costs for smaller companies.

But going too far would allow more potential bad actors to evade scrutiny simply based on ...