The Consumer Financial Protection Bureau (CFPB) issued a bulletin outlining its expectations for supervised banks and nonbanks to ensure compliance with federal consumer financial law and protect the interests of consumers.

“The CFPB recognizes that the use of service providers is often an appropriate business decision for supervised banks and nonbanks. Supervised banks and nonbanks may outsource certain functions to service providers due to resource constraints, use service providers to develop and market additional products or services, or rely on expertise from service providers that would not otherwise be available without significant investment.”