The Consumer Financial Protection Bureau will stand in a few days. Are you ready?



On July 21, 2011, the Consumer Financial Protection Bureau (CFPB) will officially launch and gain the ability to write and enforce 18 consumer protection laws that guide financial products and services, including the Fair Credit Reporting Act the Equal Credit Opportunity Act and the Fair Debt Collection Practices Act. While a director to lead the CFPB has yet to be nominated, the new regulator has signaled the following priorities: 

Clarity on how credit scores affect lender decisions
Beginning July 21, 2011, lenders will be required to disclose the credit score that they used in all risk-based pricing notices and adverse action notices.

Shorter and simpler consumer disclosure forms
In May, the CFPB released draft mortgage disclosure forms combining Truth In Lending Act and Real Estate Settlement Procedures Act requirements, reducing the form’s length and making it easier to understand. The CFPB has made it clear that one of its first actions will be to make the terms and conditions associated with purchasing a mortgage or applying for a credit card shorter and clearer. The CFPB will test the new forms before initiating a new rule.

Review debt collection practices
On July 21, the CFPB will gain authority to enforce the Fair Debt Collection Practices Act and will be able to review current debt collector practices to determine if their methods are abusive or unfair.

For more information on how you can comply with these new business requirements and structure a successful compliance program, visit Experian's Risk-Based Pricing Website or contact your local Experian sales representative at 1 888 710 4093.

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