The Consumer Financial Protection Bureau (CFPB) is considering a rule requiring certain nonbank financial firms to register with the agency when subject to consumer financial protection agency or court orders.
The proposed rule would address local, state, or federal actions and includes the proposed publishing of the orders and company information via an online registry.
“Protecting American households is a shared effort across local, state, and federal authorities,” CFPB Director Rohit Chopra said. “The proposed registry will help the CFPB, the law enforcement community, and the public limit the harms from repeat offenders.”
Per the CFPB, the proposed rule would aid agency efforts to identify and lessen risks to American households while ensuring supervised companies perform consumer obligations.
The CFPB maintains it is important for the agency to keep a central repository of nonbanks subject to agency and court orders. The repository would enable the CFPB to track and decrease risks posed by repeat offenders and monitor all lawbreakers subject to agency and court orders.
The CFPB indicated it would share the registry information with other regulators and law enforcement agencies while noting the deadline for submitting comments regarding the proposed rule is 60 days after publication in the Federal Register.