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.

The rule will apply to consumer protection-related orders in effect as of Sept. 16, 2024, and that were created on or after Jan. 1, 2017.

CFPB-supervised covered larger institutions in the automobile financing, student loan servicing, consumer reporting, consumer debt collection, and international money transfer markets are required to register orders by Jan. 14, 2025, according to an executive summary of the rule.

Other CFPB-supervised covered institutions are required to register by April 14, 2025; all other covered nonbanks would be required to register by July 14, 2025.

The rule requires large nonbank financial institutions—those with more than $5 million in annual receipts—to file an attestation with the CFPB that the institution is complying with the written orders against it, signed by an executive overseeing the institution’s compliance with the orders. The institution must maintain records that provide “reasonable support” for the written statement for five years after the submission.

CFPB Director Rohit Chopra said in a statement the new registry “will help the CFPB and other law enforcement agencies monitor and track repeat offenders in order to better hold them accountable if they break the law again.”

Chopra gave examples of companies whose recidivism would be better monitored with a registry in place.

Nonbank online lender Enova International was fined $15 million in November by the CFPB for “widespread illegal conduct” that violated a previous agency order. In that case, the CFPB banned Enova from offering certain short-term loans for at least seven years and mandated the company reform its compensation policies “by considering how executives’ actions contribute to legal compliance,” Chopra noted.

He listed MoneyGram and TransUnion as other examples of nonbank financial institutions that had consumer protection-related orders filed against them by other federal and state agencies—orders the new registry will now track with more precision, he said.

Chopra said the registry is part of a larger effort by the CFPB to rein in repeat offenders, including the establishment of a Repeat Offenders Unit within the agency. CFPB investigations of repeat offenders have begun taking closer examinations of individuals involved in misconduct, and the agency has shut down lines of business it considered at the “center of repeat problems,” he said.