Switching from 'CFPB' to 'BCFP' Estimated to Cost Firms $300 Million

Chris Gaetano
Published Date:
Dec 6, 2018
pepi-stojanovski-509192-unsplash (3)

Plans to change the name of the Consumer Financial Protection Bureau (CFPB) to the Bureau of Consumer Financial Protection (BCFP) would require that firms pay a total of about $300 million to accommodate the change, according to the Hill. The acting director, Mick Mulvaney, who is also the White House budget director, has called for the change on the ground that the new name is actually the real one, as outlined in the Dodd-Frank Act that created the agency in the first place. 

An analysis conducted by the CFPB, however, found that while the name change itself seemed trivial, its costs would be high. The agency estimated that the many banks, mortgage providers, payday lenders and credit card companies it regulates would need to collectively pay about $300 million. Firms would need to update internal databases, regulatory filings and disclosure forms with the new name in order to comply with those rules. The name change was also estimated to cost the bureau itself between $9 million and $19 million from having to update internal materials and its website. 

Mulvaney said he is pursuing the name change as a reflection of the different direction he would like to take the bureau, namely one that is less aggressive in its enforcement efforts. He had long believed that the agency had overstepped the powers outlined in the statute creating it, and so the name change is meant to signal a scaling back of the powers it had been claiming since its creation. 

Click here to see more of the latest news from the NYSSCPA.