The federal agency charged with financial consumer protection says it “will not prioritize” enforcement or supervision actions focused on nonbanks that miss the agency’s deadlines for registering with the bureau when they become subject to orders under consumer financial protection laws.
In a release whose title refers to “regulatory relief” for small loan providers, the Consumer Financial Protection Bureau (CFPB) said it “will instead continue to focus its enforcement and supervision activities on pressing threats to consumers.” It added that it is “further considering issuing a notice of proposed rulemaking to rescind the regulation or narrow its scope.”
The bureau’s action appears to mean that nonbank providers of consumer financial products and services – who have become subject to orders due to alleged violations of consumer financial protection laws – will face little to no action from the agency if they fail to meet upcoming registration deadlines under the rule. The next deadlines for such registration are April 14 and July 14.
The registry facilitates CFPB supervision of such entities, the bureau said last year.
Beyond registration, the rule also, the CFPB said, requires nonbanks subject to its regulatory authority to also provide an annual attestation from a senior executive (or executives) regarding the company’s compliance with the order (or orders).
CFPB Offers Regulatory Relief From Registration Requirements for Small Loan Providers
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