The Consumer Financial Protection Bureau today proposed creating a public registry of terms and conditions in non-negotiable, nonbank contracts that claim to waive a customer’s ability to take certain actions, such as petitioning for bankruptcy or suing the company. Such contact language suggests the terms are legally enforceable when they are not, the agency said.
The proposed registry would focus on nonbanks subject to the CFPB’s supervisory jurisdiction, and the information would be posted on the agency’s website. “This proposal does not affect how the Bureau can apply its functions for monitoring and assessing risks posed by covered terms and conditions used by depository institutions and credit unions subject to its authority under [Consumer Financial Protection Act] sections 1022, 1025, and 1026,” the bureau said.
Nonbanks would need to register covered contract terms and conditions annually with the agency, although there would be exceptions for certain smaller entities. The proposal comes roughly a month after CFPB announced it would seek to create a separate registry listing nonbank financial firms that run afoul of certain local, state or federal consumer protection laws.
