Announced in July of 2012, the CFPB’s first public enforcement action focuses on the practices of 3rd party providers. Through this initial action, the CFPB has made it clear that it holds institutions responsible for the behavior of 3rd parties that have direct contact with consumers. This underscores the need for greater due diligence in implementing and adhering to policies that protect companies from potential damaging business practices by their 3rd parties.

This paper provides insight into the appropriate measures a financial
organization needs to take in order to provide the appropriate 3rd party due
diligence and comply with CFPB regulations.

Contributors: Hiperos
Categories: Whitepaper
SRC Type: Risk Management, Risk Management Outsourcing (RMO), Sourcing Management, Third Party Management