Nonbank firms that are subject to final public orders over violations of federal consumer financial protection laws will be required to register and submit information about the orders with a new “Nonbank Registry” created by final rule Monday, the Consumer Financial Protection Bureau (CFPB) said.
The bureau said the registry will help it to detect and deter corporate offenders that have broken consumer laws and are subject to federal, state, or local government or court orders. The registry will also help the bureau identify repeat offenders and recidivism trends, it said.
The bureau said it expects to make certain information about registered covered nonbanks and covered orders publicly available online.
The bureau’s final rule, proposed in late 2022, will affect covered nonbanks with respect to orders that remain in effect on Sept. 16, 2024, (the final rule’s effective date), or that have an effective date on or after that date. The CFPB said registration will begin as soon as Oct. 16, 2024, but that the requirements will be phased in on a rolling basis.
Specifically, the bureau that under the final rule:
- Covered nonbanks will be required report certain final agency and court orders and judgments to the CFPB. These orders include consent and stipulated orders brought under consumer protection laws.
- Nonbank companies supervised by the CFPB that are subject to an order will be required to provide a written attestation from an executive that confirms compliance with any relevant orders.
The CFPB said it made changes to the proposed rule in response to public feedback. For example, it said registrants with orders published in the Nationwide Multistate Licensing System’s (NMLS) Consumer Access website may use a simplified filing process.