Written by Steve Van Beek
The CFPB recently requested information from the Federal Trade Commission's enforcement of consumer financial regulations among entities under the FTC's jurisdiction. One paragraph from the FTC's response jumped out at me:
"Your letter also asks for specific data regarding compliance examinations, including the extent of compliance, number of entities examined, and compliance challenges experienced by entities subject to the FTC's jurisdiction. The Commission does not conduct compliance examinations or collect compliance-related data concerning the non-bank entities within its jurisdiction. As a result, this letter does not provide information on compliance examinations."
This reminds me of one of my favorite blog posts - from just over two years ago. In it, I quoted from the Federal Trade Commission's Regulatory Analysis for the Risk-based Pricing Notice regulation:
What about the Federal Trade Commission's regulation?
"Number of respondents: As discussed above, the proposed requirements would require a person that is required to provide a risk-based pricing notice and uses a credit score in making the credit decision requiring a risk-based pricing notice to add information to that disclosure. Given the broad scope of creditors, it is difficult to determine precisely the number of them that are subject to the Commission’s jurisdiction and that engage in risk-based pricing and use a credit score in making the credit decision requiring a risk-based pricing notice. As a whole, the entities under the Commission’s jurisdiction are so varied that there are no general sources that provide a record of their existence, and they include many small entities for which there is no formal tracking method. Nonetheless, Commission staff estimates that the proposed regulations will affect approximately 199,500 creditors subject to the Commission’s jurisdiction. The Commission invites comment and information about the categories and number of creditors subject to its jurisdiction." (emphasis added).
So - how is there a level playing field for consumer financial products and services when one regulator doesn't even know exactly which entities they regulate and doesn't conduct compliance exams?
Have a great weekend!