12 CFR 1090
The Consumer Financial Protection Bureau (CFPB) issued an Advanced Notice of Proposed Rulemaking (ANPR) seeking information to assist it in considering whether to propose a rule to amend the test to define larger participants in the automobile financing market established by the Bureau’s Defining Certain Automobile Leasing Activity as a Financial Product or Service Final Rule published in June 2015.
Comments must be received by September 22, 2025. The ANPR can be found here.
Summary
Section 1024 of the Consumer Financial Protection Act (CFPA) gives the Bureau supervisory authority over “larger participants” of a market for other consumer financial products/services. The Bureau published its Automobile Financing Larger Participant Rule in 2015.
The Bureau is seeking information in order to consider whether to propose a rule to amend the test to define larger participants in the automobile financing market. Currently, the nonbank covered person is considered a larger participant of the automobile financing market if the nonbank covered has at least 10,000 aggregate annual originations.
The Bureau is concerned that the benefits of the current threshold may not justify the compliance burdens for many of the entities that are currently considered larger participants in this market and that the current threshold may be diverting limited Bureau resources.
Therefore, the Bureau seeks comment on the questions listed below:
- Is 10,000 aggregate annual originations an appropriate threshold for determining which entities should be considered larger participants in the automobile financing market? If not, what type of threshold would be more appropriate and why?
- How would consumers be impacted by a potential increase in the threshold? Submissions of data related to the benefits or costs to consumers of the current rule and any particular change to the threshold are encouraged.