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.
Today, the CFPB is publicly releasing its first supervisory designation order in a contested matter, pursuant to its procedural rules. The CFPB has determined that World Acceptance Corporation has met the legal requirements for supervision. The CFPB is making this order public to provide transparency about how it assesses risks using consumer complaints and other factors.
Importantly, the CFPB’s order does not constitute a finding that the entity has engaged in wrongdoing.
Read the supervisory designation order.
Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).
Employees who they believe their company has violated federal consumer financial protection laws are encouraged to send information about what they know to whistleblower@cfpb.gov.
The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces Federal consumer financial law and ensures that markets for consumer financial products are fair, transparent, and competitive. For more information, visit www.consumerfinance.gov.
FAQs
The justices ruled 7-2 that the way the CFPB is funded does not violate the Constitution, reversing a lower court and drawing praises from consumers. Justice Clarence Thomas wrote the majority opinion, splitting with his frequent allies, Justices Samuel Alito and Neil Gorsuch, who dissented.
Who is subject to CFPB supervision? ›
The CFPB supervises a range of companies to assess their compliance with federal consumer financial laws. We have supervisory authority over banks, thrifts, and credit unions with assets over $10 billion, as well as their affiliates.
Is the Consumer Financial Protection Bureau legit? ›
The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces Federal consumer financial law and ensures that markets for consumer financial products are fair, transparent, and competitive.
Does filing a complaint with the CFPB do anything? ›
Consistent with applicable law, we securely share complaints with other state and federal agencies to, among other things, facilitate: supervision activities, enforcement activities, and. monitor the market for consumer financial products and services.
Why is CFPB funding unconstitutional? ›
It held that the CFPB's funding structure violated the Appropriations Clause because the CFPB has unilateral discretion to determine its own funding level and the funds it receives are insulated from Congress's control.
What is the standard of unfairness in CFPB? ›
To be unfair, the act or practice must be injurious in its net effects — that is, the injury must not be outweighed by any offsetting consumer or competitive benefits that also are produced by the act or practice.
Why am I getting a letter from CFPB? ›
Sometimes the CFPB will send a warning letter to advise recipients that certain actions may violate federal consumer financial law. These are not accusations of wrongdoing.
What can the CFPB do for me? ›
Our work includes: Rooting out unfair, deceptive, or abusive acts or practices by writing rules, supervising companies, and enforcing the law. Enforcing laws that outlaw discrimination in consumer finance. Taking consumer complaints.
Why would CFPB send me a check? ›
CFPB-administered payments
The person or company that violated the law pays the CFPB, and then we send the money to harmed consumers, sometimes through a payments administrator. These payments are also known as Bureau-Administered Redress.
What actions can the CFPB take? ›
When a financial institution, individual, or other entity subject to the CFPB's authority breaks the law, the CFPB may take enforcement action against them. In certain cases, the CFPB may partner with other federal, state, or local agencies to investigate the wrongdoing and coordinate the enforcement action.
The CFPB has regulatory authority over providers of many types of financial products and services, including credit cards, banking accounts, loan servicing, credit reporting and consumer debt collection. A person shops in the beef section of a supermarket on February 13, 2023 in Los Angeles, California.
How to respond to a CFPB complaint? ›
Respond to complaints
Companies receive and respond to these complaints through the Company Portal, a secure online environment that protects consumer privacy and the confidentiality of company responses.
What was the purpose of the Consumer Financial Protection Bureau? ›
The CFPB was created under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The purpose of the CFPB is to promote fairness and transparency for mortgages, credit cards, and other consumer financial products and services.
What is a criticism of the Wall Street Reform and consumer protection Act of 2010? ›
Some experts have argued that Dodd–Frank does not protect consumers adequately and does not end too big to fail. Research also finds that Dodd–Frank's increased regulation of credit rating agencies negatively impacted financing and investment of firms worried about their credit ratings.
What is the CFPB lawsuit? ›
The CFPB's lawsuit asks the court to order PHEAA to stop its illegal conduct, provide redress to borrowers it has harmed, and pay a civil penalty. “PHEAA has ignored its responsibilities and illegally pursued borrowers for loans they no longer owe,” said CFPB Director Rohit Chopra.
What was the Supreme Court decision on the CFPB? ›
Yesterday, the Supreme Court rejected a radical theory that would have rattled financial markets by injecting uncertainty into all of the CFPB's actions taken since day one. In its opinion, the Court repudiated the arguments of the payday loan lobby. The Court's ruling makes clear the CFPB is here to stay.
