NYT: Collection and Credit Firms Facing Broad New Oversight

[jannyk]

http://dealbook.nytimes.com/2012/02/16/consumer-bureau-proposes-first-crackdown/

Large debt collectors and credit reporting companies would face regular federal oversight for the first time under a broad new proposal announced on Thursday by the consumer finance watchdog. The Consumer Financial Protection Bureau proposed a draft rule that would allow the agency to supervise two significant corners of the financial industry that until now have largely evaded federal scrutiny.

“Our proposed rule would mean that those debt collectors and credit reporting agencies that qualify as larger participants are subject to the same supervision process that we apply to the banks,” Richard Cordray, the new director of the bureau, said in a statement.

The proposal now enters a 60-day comment period. The bureau expects to finalize the rule by July, the two-year anniversary of the agency’s creation.

Credit agencies, which produce on-demand reports featuring a consumer’s credit score and borrowing history, are inextricably linked to the consumer finance industry. Consumers clamor for favorable reports, a prerequisite for obtaining credit cards, a home mortgage or even a cellphone.

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At Last!!!

[msongs]

1. fi experian charges for a report, we should get a slice of that $$$ right? nt

[fasttense]

2. Yeah right

"Our proposed rule would mean that those debt collectors and credit reporting agencies that qualify as larger participants are subject to the same supervision process that we apply to the banks.”

As if we have some control over banks. Dooes this mean debt collectors and credit reporting agencies get free bailouts from the tax payers too.