The CFPB finalized a rule Monday to establish a registry requiring certain nonbank entities that have broken consumer laws and are subject to federal, state, or local government or court orders to report them to the bureau. According to the CFPB, it will help the bureau “identify repeat offenders and recidivism trends.”
The rule does not apply to credit unions. It requires covered nonbank companies to:
- Register with the CFPB by reporting certain final agency and court orders and judgments. These orders include consent and stipulated orders brought under consumer protection laws.
- Provide an attestation from a senior executive that confirms compliance with any relevant orders.
The registration requirements will be phased in on a rolling basis.
America’s Credit Unions’ legacy organizations generally supported the requirements, and the organizations supports additional supervision for nonbank entities not complying with consumer law.
