CFPB Rescinds Rule Requiring Firm Registry
- The Consumer Financial Protection Bureau (CFPB) is rescinding a rule (the NBR Rule) that would have created a public registry of nonbank financial companies that violated consumer protection...
- * the NBR Rule: Required nonbank financial companies with legal violations (subject to government or court orders) to report those orders to a public bureau registry.
Here’s a summary of the provided text:
The Consumer Financial Protection Bureau (CFPB) is rescinding a rule (the NBR Rule) that would have created a public registry of nonbank financial companies that violated consumer protection laws.
Key points:
* the NBR Rule: Required nonbank financial companies with legal violations (subject to government or court orders) to report those orders to a public bureau registry.
* Rescission Reason: The CFPB believes the costs of maintaining the registry outweigh the benefits. They cite concerns about costs being passed on to consumers and the expense of running the system itself.
* Timing: The rescission will be effective upon publication in the Federal Register, scheduled for Wednesday, October 29th.
* History: The rule was initially proposed in December 2022 and finalized in June 2024 under the Biden management.
* Original Intent: The original goal of the registry was to help monitor and reduce risks to consumers by increasing transparency around violations by nonbank financial companies.