The Consumer Financial Protection Bureau (CFPB) on Monday proposed requiring 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 further proposed to publish the orders and company information via an online registry.
Generally, the CFPB says, 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 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 proposed rule would help the agency ensure that supervised companies perform their obligations to consumers, as well as identify potential risks.
“Protecting American households is a shared effort across local, state, and federal authorities,” said CFPB Director Rohit Chopra. “The proposed registry will help the CFPB, the law enforcement community, and the public limit the harms from repeat offenders.”
The CPFB says the repository will allow it to track and mitigate the risks posed by repeat offenders, while also being able to monitor all lawbreakers subject to agency and court orders. In order to promote transparency among fellow regulators and law enforcement agencies, the registry will be public.
The CFPB also stated in a news release that the proposal entails “enhancing market monitoring and risk-based supervision efforts” to ensure that the bureau and its enforcement partners can identify previous lawbreakers and potentially halt any instances of further large-scale harm or continued illegal efforts.
The full proposed rule can be read here.
