The Consumer Financial Protection Bureau, or CFPB, has released a bulletin clarifying that financial institutions under Bureau supervision may be held responsible for the actions of the companies with which they contract. The Bureau will take a close look at service providers’ interactions with consumers. The CFPB stated it will hold all appropriate companies accountable when legal violations occur.
The bulletin states the Bureau’s expectation that supervised financial institutions have an effective process for managing the risks of service provider relationships. The CFPB recommends that supervised financial institutions take steps to ensure that business arrangements with service providers do not present unwarranted risks to consumers.
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