On August 8, the Consumer Financial Protection Bureau (CFPB or Bureau) published a series of proposed rules aimed at redefining what constitutes a “larger participant” in several key financial markets. Under § 1024 of the Consumer Financial Protection Act, the Bureau’s supervisory authority extends to “larger participants” offering consumer financial products or services. The proposed rules seek to amend existing thresholds in the consumer reporting, auto financing, consumer debt collection, and international money transfer markets to better align with current market conditions and regulatory priorities. The Bureau is accepting comments on these proposals until September 22, 2025.
Consumer Reporting Market
Historically, larger participants in the consumer reporting market have been defined by annual receipts exceeding $7 million. However, the CFPB is reconsidering this threshold, questioning whether the benefits of its supervisory authority justify the compliance burdens imposed on entities currently classified as larger participants.
The Bureau is concerned that the current threshold may disproportionately impact smaller businesses and divert resources from more significant supervisory priorities. The proposed rule aims to address these concerns by potentially raising the threshold to align with the Small Business Administration’s size standards, currently set at $41 million in annual revenues for small businesses in the relevant NAICS code. This would also align with the Bureau’s historical examination efforts, which have focused on consumer reporting entities with annual receipts exceeding $50 million.
Automobile Financing Market
The CFPB is also seeking to redefine larger participants in the automobile financing market. Currently, a nonbank covered person is considered a larger participant if they have at least 10,000 aggregate annual originations. The Bureau is evaluating whether this threshold remains appropriate given the market’s evolution.
The proposed rule suggests raising the threshold significantly, with options ranging from 300,000 to 1,050,000 aggregate annual originations, to focus oversight on the most active market participants.
Consumer Debt Collection Market
In the consumer debt collection market, the CFPB is considering changes to the threshold currently set at $10 million in annual receipts. The proposed rule does not specify a new threshold, but suggests raising the threshold to better align with the Small Business Administration’s standards for classification of a debt collection agency as a small business concern (currently at $19.5 million).
International Money Transfer Market
Currently, a nonbank covered person qualifies as a larger participant if they conduct at least one million aggregate annual international money transfers. The proposed rule considers raising the threshold to focus oversight on the most active market participants. Options include increasing the threshold to 10,000,000, 30,000,000, or even 50,000,000 annual transfers, which would significantly reduce the number of entities classified as larger participants while still covering a substantial portion of the remittance transfer market.
Invitation for Public Comment
The CFPB is actively seeking public input on several critical questions across these markets, including:
- Are the current thresholds appropriate, or should they be adjusted?
- How would consumers be affected by changes to the thresholds?
- What are the potential impacts on market behavior and consumer protection?
- How might changes affect the Bureau’s ability to address potential market failures?
Interested parties can submit their comments electronically via the Federal eRulemaking Portal or by email. All comments will be publicly accessible.
