Following the implementation of its Nonbank Supervision Program (click here to read our alert on the program), the Consumer Financial Protection Bureau (CFPB) entered into a memorandum of understanding Jan. 20, 2012, with the Federal Trade Commission (FTC) clarifying the agencies' respective roles and responsibilities in protecting consumers in the financial products and services marketplace.
An independent agency with the authority to implement and enforce federal consumer financial law, the CFPB will focus its efforts, according to director Richard Cordray, on "nonbank" financial companies, including mortgage lenders, originators, brokers and servicers, loan modification and foreclosure relief services, payday lenders and private education lenders, as well as debt collection, consumer reporting, auto financing and money services businesses, all of which have historically fallen outside the authority of federal regulators and consumer protection agencies.
In the memorandum of understanding, the CFPB and FTC agreed, among other things:
To coordinate law enforcement activities, including conducting joint investigations, as well as engaging in joint training and sharing materials and resources;
Please see full alert below for more information.
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