CFPB to require nonbanks to register outside enforcement orders

The Consumer Financial Protection Bureau (CFPB) passed a new rule requiring nonbank financial companies to register consumer protection orders filed against them by other federal agencies, courts, or states.

The rule mandates nonbank financial companies register with the bureau when they become subject to a “written order imposing obligations based on violations of certain consumer protection laws.” The registrations must include basic information about the company and the written order and be periodically updated if the order is changed or extended.

The CFPB said Monday in a press release the new registry will help the agency “to identify repeat offenders and recidivism trends.” The agency proposed the rule in December 2022.