CFPB-PR-240223-1
Date Released: 
February 23, 2024
Headline:
CFPB-PR-240223-1 – CFPB Orders Federal Supervision for Installment Lender Following Contested Designation
Excerpt:
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today published an order establishing supervisory authority over installment lender World Acceptance.
The CFPB is responsible for supervising a wide range of financial firms to ensure they are complying with federal consumer financial protection laws. The CFPB has supervised nonbank entities in certain industries like mortgage and payday lending, service providers to banks and credit unions, and larger players in particular markets as defined by rule.
In 2022, after conducting an assessment of its supervision program, the CFPB identified that the agency was failing to conduct oversight using a specific legal authority to supervise entities posing risks to consumers. The CFPB began to utilize this dormant authority and issued procedures to promote transparency about this tool.
The CFPB’s procedures require the CFPB to issue a notice to an entity not currently subject to a supervisory examination. The entity can either consent to supervision or contest the notice. Typically, the notices have pointed to consumer complaints and other indicators of risk to consumers.
Supervisory exams are a confidential process that help companies identify and rectify potential violations of law. Most entities receiving notices have decided to consent to supervision. These entities operate in a range of industries across consumer financial services.
https://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-federal-supervision-for-installment-lender-following-contested-designation/
[Date Accessed: 3/11/2024]
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