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The Consumer Financial Protection Bureau (CFPB) Is Clear: You Can’t Outsource Responsibility

Federal regulators have demonstrated through recent regulatory guidance and enforcement actions that financial institutions are responsible for managing third party service providers’ activities. Recently, Peggy Twohig, the CFPB’s Assistant Director for Nonbank Supervision, went a step further, indicating that if a service provider is not meeting regulator expectations, a financial institution should renegotiate or even sever the relationship.

This means that you are responsible for your service providers: the buck stops with you. Whether you outsource data reporting to third party vendors or handle it in-house, robust training can help you demonstrate to examiners that your institution is committed to maintaining accountability and meeting professional standards.

The CDIA developed the Metro 2® e-Learning System explicitly to support data furnishers by providing detailed guidance on the use of the Metro 2®, the credit reporting industry’s standard format. This course is valuable for employees and vendors alike and provides a Certificate of Completion for those who successfully complete the course. Show federal regulators that you take compliance seriously – it is your responsibility to do so.  To register click on this link

Source:  Consumer Data Industry Association (CDIA)

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