CFPB Advances Rulemakings to Reassess “Larger Participant” Thresholds in Four Key Markets

Overview

On August 8, 2025, the Consumer Financial Protection Bureau (CFPB) published four Advance Notices of Proposed Rulemaking (ANPRs) in the Federal Register. The CFPB is seeking comment on significantly raising the thresholds that determine whether certain nonbank companies qualify as “larger participants” in four consumer financial product markets:

• Automobile Financing
• International Money Transfer
• Consumer Reporting
• Consumer Debt Collection

Comments must be received by September 22, 2025. If finalized, these changes would remove many small and mid-sized nonbank companies from the CFPB’s routine supervisory jurisdiction, including certain fintech operators, focusing oversight on each industry’s largest players.

What Is “Larger Participant” Status?

Under the Dodd-Frank Act, the CFPB has statutory supervisory authority over certain nonbank financial services providers. In some markets, such as residential mortgage lending, private education lending and payday lending, the CFPB’s supervisory jurisdiction applies to all covered nonbank entities regardless of their size or market activity. In contrast, for other consumer financial markets—including automobile financing, international money transfers, consumer reporting and consumer debt collection—the CFPB’s supervisory authority applies only to nonbank entities that the Bureau designates as “larger participants” by rule. Larger participant status is determined by market-specific thresholds, such as annual loan originations or revenue levels, established through CFPB rulemaking. Only entities meeting or exceeding these thresholds are subject to routine CFPB supervision and examinations, enabling the CFPB to focus its resources on firms with potentially greater consumer impact.

A company meeting or exceeding the applicable larger participant threshold must comply with ongoing CFPB supervisory examinations and information requests and is subject to the same depth of review as the largest banks in the same market.

Why Is the CFPB Reconsidering the Thresholds?

According to the ANPRs, the CFPB’s current thresholds now often capture smaller or mid-sized firms that do not have systemic market impact due to:

• Market consolidation—larger players now control more market share.
• Outdated SBA size standards—thresholds are misaligned with revised definitions of “small” businesses.
• Resource prioritization—supervision is most impactful when directed at entities serving the largest number of consumers or handling the largest transaction volumes.

The original larger participant thresholds were set between 2012 and 2015 and reflected the CFPB’s judgment at the time on market structure, industry size and the Small Business Administration’s (SBA) definitions of “small” firms. Current CFPB leadership believes that these thresholds may be outdated. The CFPB’s analysis suggests that current larger participant thresholds capture many smaller and mid-sized nonbank entities that do not pose a significant risk to consumer markets, thereby diluting supervisory focus and imposing disproportionate compliance costs on firms having limited systemic impact. By substantially raising these thresholds, the CFPB intends to concentrate its limited supervisory resources on the largest market participants who serve most consumers and handle the majority of transaction volume, and to align supervision more closely with current market realities, as well as updated SBA size standards. This recalibration reflects a strategic shift toward what the CFPB believes to be more efficient regulation, focusing on firms whose practices have the greatest potential effect on consumer financial well-being.

Market-by-Market Summary of Proposals

The CFPB has issued separate ANPRs for each of the four affected markets, outlining proposed increases to the “larger participant” thresholds and inviting public comment. The key elements for each market are summarized below.

Automobile Financing

The CFPB’s ANPR for the automobile financing market seeks public input on whether to raise the threshold that defines which nonbank lenders are larger participants subject to routine CFPB supervision. The Bureau highlights concerns that the current threshold captures many smaller and mid-sized lenders, which may strain supervisory resources and impose disproportionate compliance costs.

• Current threshold: At least 10,000 aggregate annual originations of loans or leases.
• Proposed thresholds: Considering increase to 300,000, 550,000 or 1,050,000 annual loan or lease origination.
• CFPB Rationale: Many firms over the 10,000-transaction mark are relatively small or regional, but industry consolidation means a small number of large players now dominate originations. Raising the threshold would focus resources on those firms and reduce burdens on smaller lenders.
• Impact: At the highest proposed threshold, only about five nonbank lenders (covering approximately 42% of originations) would remain under supervision.

International Money Transfers

The CFPB’s ANPR for the international money transfer (or remittance) market (the electronic transfer of funds sent by consumers in the United States to persons living abroad) proposes raising the threshold for larger participant status from one million annual transfers to substantially higher levels. The CFPB notes that a small number of nonbank transfer providers now account for the vast majority of remittance volume, suggesting supervision should focus on those largest firms.

• Current threshold: One million aggregate annual international transfers.
• Proposed thresholds: The CFPB is considering an increase to 10 million, 30 million or 50 million annual international transfers.
• CFPB Rationale: The largest providers process the overwhelming majority of remittances (77% of transfers are handled by the top eight companies, while the current rule captures many smaller players whose relative market share is low).
• Impact: At the highest proposed threshold, about four companies would remain covered, still accounting for 61% of all international money transfer volume.

Consumer Reporting

The CFPB’s ANPR on consumer reporting proposes aligning the larger participant threshold with the updated SBA standard, raising it from $7 million to $41 million in annual receipts. This change would exclude many smaller regional and specialty consumer reporting agencies, including certain fintech operations, from routine supervision.

• Current threshold: $7 million in annual receipts from consumer reporting activity (based on SBA’s applicable small business size standard in 2012).
• Proposed threshold: Align with today’s SBA credit bureau standard of $41 million in annual receipts from consumer reporting activity.
• CFPB Rationale: Raising the threshold would update the 2012 figure to reflect inflation and industry growth, exempting many niche or regional agencies that have limited consumer impact.
• Impact: Nationwide consumer reporting agencies would remain under supervision while smaller specialty bureaus would not.

Consumer Debt Collection

In its ANPR addressing consumer debt collection, the CFPB considers raising the threshold for larger participant status from $10 million in annual receipts to much higher levels. The CFPB cites industry consolidation and changed SBA size definitions as reasons to focus supervisory efforts on firms with the largest market impact.

• Current threshold: $10 million in annual receipts from consumer debt collecting activity (covering about 4% of collectors at rule inception).
• Proposed thresholds: The CFPB is considering an increase to $25 million, $50 million, or $100 million in receipts from debt collection activity.
• CFPB Rationale: The SBA now considers collections firms under $19.5 million in receipts to be “small,” and industry consolidation has shifted “large” status upward.
• Impact: At the $100 million threshold, CFPB would supervise relatively few collectors but still cover up to 51% of market revenue.

Key Action Points for Companies in Affected Industries

In light of these proposed threshold changes, companies should evaluate how the revisions could impact their regulatory status and prepare accordingly.

1. Determine Your Supervisory Status

• Calculate your company’s annual originations, transfer volumes or receipts.
• Compare against each market’s proposed thresholds to see if you would remain a “larger participant.”

2. Assess Strategic Advantages or Risks

• Consider whether exiting CFPB supervision could reduce compliance costs or create competitive advantages.
• Identify any reputational or operational risks of losing CFPB supervisory oversight.

3. Prepare and Submit Comments

• As noted above, the public comment period closes September 22, 2025.
• Collaborate with counsel to draft and submit comments supporting or opposing specific thresholds that would materially affect your business.

4. Plan for Compliance Continuity

• If remaining covered under revised thresholds, maintain and, where possible, strengthen compliance programs in anticipation of continued CFPB examinations.
• If no longer covered, continue to maintain and enhance compliance programs while tracking enforcement trends and rule changes, as CFPB enforcement authority still applies even without routine supervision and plaintiff lawyers and regulators in certain states may bring civil actions or enforcement proceedings.

5. Stay Informed and Engage Stakeholders

• Monitor CFPB updates, industry feedback and trade group positions.
• Engage internally with compliance, operations and executive leadership on the potential impact and plan appropriate action.

If you have any questions or would like assistance, please contact any of the authors or the Manatt professional with whom you work.

90 Fed. Reg. 38415 (Aug. 8, 2025).

90 Fed. Reg. 38412 (Aug. 8, 2025).

90 Fed. Reg. 38409 (Aug. 8, 2025).

90 Fed. Reg. 38418 (Aug. 8, 2025).

12 U.S.C. §§ 5514(a)(1)(A), (D) & (E).

12 U.S.C. § 5514(a)(1)(B).