CFPB Proposes Registry of Nonbank ‘Repeat Offenders’

December 13, 2022

The Consumer Financial Protection Bureau (CFPB) proposed a rule that would require certain nonbank financial firms to register with the bureau when they become subject to certain local, state, or federal consumer financial protection agency or court orders.

The CFPB has further proposed to publish the orders and company information via an online registry. Larger companies subject to the CFPB’s supervisory authority would be required to designate an individual to attest whether the firm is adhering to registered law enforcement orders.

The CFPB proposes that:

  • Covered nonbanks would report certain agency and court orders connected to consumer financial products and services: Generally, nonbanks would have to report final agency and court orders and judgments, including consent and stipulated orders, brought under federal consumer financial protection laws or state laws regarding unfair, deceptive, or abusive acts or practices.
  • Larger supervised nonbanks would designate a senior executive to attest regarding the firm’s compliance with covered orders: Larger nonbanks that are supervised by the CFPB would be required to designate a senior executive to submit an annual supervisory written statement attesting to the steps taken to oversee the activities subject to the order and whether the executive knows of any violations of, or other instances of noncompliance with, the covered order.

Covered nonbanks are the only entities subject to the reporting requirement. This includes businesses that provide a consumer financial product.

There are two exclusions:

  • Companies in the business of insurance
  • The proposed rule includes an exclusion to mirror the requirements of 12 U.S.C. 5517 limiting the CFPB’s supervisory authority for entities or people that offer services adjacent to financial products like real estate brokerages, merchants and persons regulated by a state insurance commissioner or performing the practice of law.

One caveat is that the CFPB has authority over settlement services through the Real Estate Settlement Procedures Act (RESPA). The bureau may try to include ALTA members when the case or penalty is RESPA based.

In addition to publishing information about the agency or court order, the CFPB is considering publication of certain registration information about the company via release on the CFPB’s publicly available website.

While the CFPB might later consider collecting or publishing the information described in the proposal from insured banks and credit unions, the bureau said there is greater need to collect this information from nonbanks under its jurisdiction.

There will be a 60-day comment period once the proposal is published in the Federal Register.

CFPB Director Rohit Chopra is scheduled to testify Dec. 14 before the House Financial Services Committee, to provide a semi-annual report of the bureau.


Contact ALTA at 202-296-3671 or [email protected].