WASHINGTON –The Consumer Financial Protection Bureau (CFPB) has published an order establishing supervisory authority over installment lender World Acceptance. The company, one of the country’s largest installment lenders, had earlier contested the designation.
The CFPB said the order does not constitute a finding that the entity has engaged in wrongdoing.
In a statement announcement its supervisory authority, the Bureau went to some lengths to explain why it has the power to issue such an order. The CFPB said that in 2022, after conducting an assessment of its supervision program, it identified that the agency was failing to conduct oversight using a specific legal authority to supervise entities posing risks to consumers. The CFPB said it began to utilize this “dormant authority” and issued procedures to promote transparency about this tool.
Required by Procedures
The CFPB further stated its procedures require it to issue a notice to an entity not currently subject to a supervisory examination. The entity can either consent to supervision or contest the notice.
“Typically, the notices have pointed to consumer complaints and other indicators of risk to consumers,” the CFPB said.
The Bureau further said it is publicly releasing its first supervisory designation order in a contested matter, pursuant to its procedural rules, after determining World Acceptance Corp. has met the legal requirements for supervision.
The supervisory designation can be read here.
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