CFPB Lays Out Rules For Extending Reach Beyond Banks

Law360, New York (May 24, 2012, 7:40 PM EDT) -- The federal government's consumer finance watchdog on Thursday described how it plans to bring nonbank companies offering potentially risky financial products under its regulatory umbrella, putting retailers, prepaid card operators and others on notice that they could be subject to additional scrutiny.

The proposed rule clarifies the procedure that the Consumer Financial Protection Bureau will employ when designating a financial product offered by companies other than banks as risky to customers regardless of the company's size, a right given to the agency under the Dodd-Frank Wall...
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