WASHINGTON–Formally changing the name of the former Consumer Financial Protection Bureau (CFPB) to the Bureau of Consumer Financial Protection (BCFP) could cost as much as $300 million for business the agency regulates, according to one new analysis.
The Washington and congressional publication The Hill said the move, which has been pushed by BCFP Acting Director Mick Mulvaney since he was named to the position, would mean approximately $300 million in costs to banks, credit unions and other entities overseen by the agency as they update their databases, regulatory filings and disclosure forms with the new “BCFP” name to be in compliance with the rules enforced by the agency.
As CUToday.info reported earlier, Mulvaney in April of this year he supported the reworking of its name and abbreviation, as the legislation that created the Bureau, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, never called it the Consumer Financial Protection Bureau, but instead the Bureau of Consumer Financial Protection. The agency referred to itself as the CFPB under former director Richard Cordray.
In terms of the costs related to the name change, more specifically, the publication cited internal agency analysis that found changes required to comply with the Fair Credit Reporting Act (FCRA), the Electronic Fund Transfer Act (EFTA) and “certain mortgage regulations” would cost firms approximately $100 million for each rule. The figure is based on a 2010 cost-benefit analysis of agency name changes in its internal report, according to the Hill.
Ironically, as CUToday.info reported here, the agency recently advertised to fill a newly created position that would perform a cost/benefit analysis on any new regulations proposed by the BCFP.
In addition, The Hill further reported the analysis by the BCFP found the name change would cost it between $9 million and $19 million related to updates to internal materials and its website,